Exhibit 1 shows the common-size balance sheets and income statements of nine companies operating in different industries, headquartered in various countries and using different accounting systems as described below. Use your economic intuition and the financial information cues provided to match the companies and industries listed below with those depicted in the exhibit. ArcelorMittal ArcelorMittal is the largest steel producing company in the world. It is the result of the mergers of several Indian and European companies. It is controlled by Lakshmi Mittal, one of India's richest tycoons. Headquartered in Luxembourg, it is listed on the NYSE and on several European exchanges. Baidu Baidu is a Chinese web services company. Its services include a Chinese search engine, search and community services such as an online collaboratively-built encyclopaedia, and a searchable keyword-based discussion forum. Established in 2000, its estimated market share in China was 83.6% at the end of 2010. In December 2007, it became the first Chinese company to be included in the NASDAQ-100 index. Carrefour Carrefour is a French international hypermarket chain. It is the second largest retail group in the world in terms of revenue. Carrefour operates in Europe, Argentina, Brazil, China, Colombia and the Dominican Republic, and also has shops in North Africa and other parts of Asia. It is part of the French CAC 40 index. ISS is one of the world's leading facility services groups, providing services such as cleaning catering, office support, property service, security and facility management. Based in Denmark ISS operates in over 50 countries around the world. The total number of employees in the group reached 530,000 in 2013, partly through acquisitions. Epigenomics Epigenomics is a German molecular diagnostics company focusing on the development anc commercialization of diagnostic tests for cancer. These tests potentially address millions of individuals in each of the major markets. While some tests lend themselves to partnering with established diagnostics industry players, others are commercialized by Epigenomics. The company is listed in Germany. onald's is an American fast food company. McDonald's is the world's largest restaurant by revenue, serving over 69 million customers daily in over 100 countries across 37,855 ts as of 2018. It is listed on the NYSE. artis artis is a multinational pharmaceutical company based in Switzerland. It provides hcare solutions. The company offers a portfolio focused on broad areas of healthcare: vative prescription medicines, cost-saving generic pharmaceuticals, preventive vaccines consumer health products. It is listed on the NYSE. cobras obras is a semi-public Brazilian multinational energy company. It is the largest company atin America by market capitalization and revenue, and the largest company headquartered e southern hemisphere by market value. It is listed on several North and South American European exchanges. lever ever is a British-Dutch multinational corporation that owns many of the world's consumer uct brands in foods, beverages, cleaning agents and personal care products. It is a dualcompany consisting of Unilever N.V. in Rotterdam (Netherlands) and Unilever PLC in lon. Both companies have the same directors and operate as a single business. Exhibit 1 Common-Size Financial Statements \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 \\ \hline Cash and marketable securities & 48% & 7% & 11% & 3% & 8% & 3% & 20% & 79% & 9% \\ \hline Receivables & 2% & 8% & 6% & 5% & 3% & 7% & 25% & 1% & 5% \\ \hline Inventories & 0% & 11% & 5% & 23% & 4% & 0% & 1% & 2% & 13% \\ \hline Other current assets & 3% & 0% & 3% & 5% & 2% & 2% & 0% & 3% & 12% \\ \hline PPE and fixed assets & 6% & 17% & 11% & 39% & 71% & 70% & 3% & 3% & 27% \\ \hline Goodwill & 6% & 29% & 24% & 6% & 0% & 7% & 47% & 0% & 17% \\ \hline Other Intangibles & 3% & 20% & 27% & 0% & 1% & 7% & 2% & 2% & 3% \\ \hline Investments and other financial assets & 27% & 1% & 6% & 5% & 1% & 4% & 1% & 0% & 6% \\ \hline Other assets & 6% & 6% & 8% & 14% & 10% & 0% & 1% & 11% & 8% \\ \hline Total assets & 100% & 100% & 100% & 100% & 100% & 100% & 100% & 100% & 100% \\ \hline Current liabilities & 19% & 33% & 20% & 26% & 11% & 9% & 35% & 15% & 49% \\ \hline Long-term debt & 18% & 36% & 15% & 10% & 36% & 95% & 35% & 0% & 15% \\ \hline Other noncurrent liabilities & 4% & 10% & 10% & 16% & 19% & 15% & 5% & 0% & 13% \\ \hline Shareholders' Equity & 59% & 21% & 54% & 48% & 33% & 19% & 25% & 85% & 24% \\ \hline Total L+SE & 100% & 100% & 100% & 100% & 100% & 100% & 100% & 100% & 100% \\ \hline Net revenues & 100% & 100% & 100% & 100% & 100% & 100% & 100% & 100% & 100% \\ \hline COGS (and depreciation) & 51% & 56% & 35% & 88% & 64% & 49% & 73% & 29% & 78% \\ \hline SGA & 19% & 17% & 31% & 3% & 9% & 10% & 21% & 568% & 19% \\ \hline Interest expense & 2% & 1% & 2% & 3% & 6% & 5% & 1% & 36% & 0% \\ \hlineR&D & 15% & 2% & 17% & 0% & 1% & 0% & 0% & 419% & 0% \\ \hline Income tax expense (benefit) & 5% & 5% & 2% & 0% & 5% & 9% & 1% & 48% & 1% \\ \hline Other & 18% & 0% & 10% & 1% & 8% & 1% & 4% & 75% & 2% \\ \hline Net Income & 27% & 18% & 24% & 7% & 8% & 28% & 0% & 828% & 0% \\ \hline \end{tabular} Figures are subject to rounding errors Exhibit 1 shows the common-size balance sheets and income statements of nine companies operating in different industries, headquartered in various countries and using different accounting systems as described below. Use your economic intuition and the financial information cues provided to match the companies and industries listed below with those depicted in the exhibit. ArcelorMittal ArcelorMittal is the largest steel producing company in the world. It is the result of the mergers of several Indian and European companies. It is controlled by Lakshmi Mittal, one of India's richest tycoons. Headquartered in Luxembourg, it is listed on the NYSE and on several European exchanges. Baidu Baidu is a Chinese web services company. Its services include a Chinese search engine, search and community services such as an online collaboratively-built encyclopaedia, and a searchable keyword-based discussion forum. Established in 2000, its estimated market share in China was 83.6% at the end of 2010. In December 2007, it became the first Chinese company to be included in the NASDAQ-100 index. Carrefour Carrefour is a French international hypermarket chain. It is the second largest retail group in the world in terms of revenue. Carrefour operates in Europe, Argentina, Brazil, China, Colombia and the Dominican Republic, and also has shops in North Africa and other parts of Asia. It is part of the French CAC 40 index. ISS is one of the world's leading facility services groups, providing services such as cleaning catering, office support, property service, security and facility management. Based in Denmark ISS operates in over 50 countries around the world. The total number of employees in the group reached 530,000 in 2013, partly through acquisitions. Epigenomics Epigenomics is a German molecular diagnostics company focusing on the development anc commercialization of diagnostic tests for cancer. These tests potentially address millions of individuals in each of the major markets. While some tests lend themselves to partnering with established diagnostics industry players, others are commercialized by Epigenomics. The company is listed in Germany. onald's is an American fast food company. McDonald's is the world's largest restaurant by revenue, serving over 69 million customers daily in over 100 countries across 37,855 ts as of 2018. It is listed on the NYSE. artis artis is a multinational pharmaceutical company based in Switzerland. It provides hcare solutions. The company offers a portfolio focused on broad areas of healthcare: vative prescription medicines, cost-saving generic pharmaceuticals, preventive vaccines consumer health products. It is listed on the NYSE. cobras obras is a semi-public Brazilian multinational energy company. It is the largest company atin America by market capitalization and revenue, and the largest company headquartered e southern hemisphere by market value. It is listed on several North and South American European exchanges. lever ever is a British-Dutch multinational corporation that owns many of the world's consumer uct brands in foods, beverages, cleaning agents and personal care products. It is a dualcompany consisting of Unilever N.V. in Rotterdam (Netherlands) and Unilever PLC in lon. Both companies have the same directors and operate as a single business. Exhibit 1 Common-Size Financial Statements \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 \\ \hline Cash and marketable securities & 48% & 7% & 11% & 3% & 8% & 3% & 20% & 79% & 9% \\ \hline Receivables & 2% & 8% & 6% & 5% & 3% & 7% & 25% & 1% & 5% \\ \hline Inventories & 0% & 11% & 5% & 23% & 4% & 0% & 1% & 2% & 13% \\ \hline Other current assets & 3% & 0% & 3% & 5% & 2% & 2% & 0% & 3% & 12% \\ \hline PPE and fixed assets & 6% & 17% & 11% & 39% & 71% & 70% & 3% & 3% & 27% \\ \hline Goodwill & 6% & 29% & 24% & 6% & 0% & 7% & 47% & 0% & 17% \\ \hline Other Intangibles & 3% & 20% & 27% & 0% & 1% & 7% & 2% & 2% & 3% \\ \hline Investments and other financial assets & 27% & 1% & 6% & 5% & 1% & 4% & 1% & 0% & 6% \\ \hline Other assets & 6% & 6% & 8% & 14% & 10% & 0% & 1% & 11% & 8% \\ \hline Total assets & 100% & 100% & 100% & 100% & 100% & 100% & 100% & 100% & 100% \\ \hline Current liabilities & 19% & 33% & 20% & 26% & 11% & 9% & 35% & 15% & 49% \\ \hline Long-term debt & 18% & 36% & 15% & 10% & 36% & 95% & 35% & 0% & 15% \\ \hline Other noncurrent liabilities & 4% & 10% & 10% & 16% & 19% & 15% & 5% & 0% & 13% \\ \hline Shareholders' Equity & 59% & 21% & 54% & 48% & 33% & 19% & 25% & 85% & 24% \\ \hline Total L+SE & 100% & 100% & 100% & 100% & 100% & 100% & 100% & 100% & 100% \\ \hline Net revenues & 100% & 100% & 100% & 100% & 100% & 100% & 100% & 100% & 100% \\ \hline COGS (and depreciation) & 51% & 56% & 35% & 88% & 64% & 49% & 73% & 29% & 78% \\ \hline SGA & 19% & 17% & 31% & 3% & 9% & 10% & 21% & 568% & 19% \\ \hline Interest expense & 2% & 1% & 2% & 3% & 6% & 5% & 1% & 36% & 0% \\ \hlineR&D & 15% & 2% & 17% & 0% & 1% & 0% & 0% & 419% & 0% \\ \hline Income tax expense (benefit) & 5% & 5% & 2% & 0% & 5% & 9% & 1% & 48% & 1% \\ \hline Other & 18% & 0% & 10% & 1% & 8% & 1% & 4% & 75% & 2% \\ \hline Net Income & 27% & 18% & 24% & 7% & 8% & 28% & 0% & 828% & 0% \\ \hline \end{tabular} Figures are subject to rounding errors