Industry COGS/Sales R&D/Sales Advertising/Sales Interest/Sales Net Income/Sales A 80% B C 58% n/a 0% 7% 0.1% not defined 3% 0.1% 0.9% 1% 6% 2.5% 10% 10% Return on Assets 8.5% 10.6% 7.2% Inventory Turnover 5.5 4 n/a Accounts Receivable Turnover 100 6 9 Long-term Debt/Equity 60% 50% 40% n/a not applicable Identify which industry each of the companies A, B, and C operate in. Give two reasons for each of your selections. Section III Earnings Management (20 Points) Earnings management can be defined as the "purposeful intervention by management in the earnings process, usually to satisfy selfish objectives" (Schipper, 1989). Earnings management techniques can be separated into those that are "cosmetic" (without cash flow consequences) and those that are "real" (with cash flow consequences). The management of a company wishes to increase earnings this period. List three "cosmetic" and three "real" techniques that can be used to achieve this objective and explain why they will achieve the objective