The five companies are as follows:

• Biogen: creates and manufactures biotechnology drugs. Many drugs are still in the development phase in this high-growth, relatively young industry. Research and manufacturing facilities are capital intensive, although the research process requires skilled scientists. Research and development are treated as expenses even though they are expected to benefit the company for several years.
• H.J. Heinz: manufactures and markets branded consumer food products. Heinz has acquired several other branded food products companies in recent years.
• Home Depot: retails home improvement products. Home Depot competes in a new retail category known as "category killer" stores. Such stores offer a wide selection of products in a particular product category (for example, books, pet products, office products). These stores have taken significant market share away from the more diversified department and discount stores in recent years.
• Inland Steel: manufactures steel products. Although steel plants are capital intensive, they also utilize unionized workers to process iron into steel products. Demand for steel products follows cyclical trends in the economy. Steel manufacturing in the United States is in the mature phase of its life cycle. Inland Steel has purposely been reducing its financial leverage.
• Servicemaster: provides home cleaning and restoration services. Servicemaster has recently acquired firms offering cleaning services for health care facilities and broadened its home services to include termite protection, garden care, and other services. Servicemaster operates as a partnership. Partnerships do not pay income taxes on their earnings each year. Instead, partners (owners) include their share of the earnings of Servicemaster in their taxable income. The partners' withdrawals are technically not dividends or repurchases of stock, but they are treated as such in this problem.

Solve for which company is which using The common size statement of cash flows attached below, and provide at least one reason you made each selection:

4 5 76.5% 38.0 2.3 116.8% -6.8 -7.4 12.6 -15.2 100.0% 97.6% 23.3 3.9 124.8% -8.5 -58.4 39.9 2.2 100.0% Common-size Statements of Cash Flows for Selected Companies 1 2 3 Operations Net Income 38.6% 45.4% 62.4% Depreciation 55.2 37.7 22.3 Other 24.3 -5.0 11.6 Working Capital from Operations 118.1% 78.1% 96.3% (Increase) Decrease in Accounts Receivable -4.8 -12.4 -7.8 (Increase) Decrease in Inventories - 15.1 -14.4 -3.1 Increase (Decrease) in Accounts Payable 0.0 12.4 2.9 Current Liabilities -1.3 36.3 11.7 Cash Flow from Operations 100.0% 100.0% 100.0% Investing Fixed Assets Acquired -64.0% - 165.7% -13.4% Change in Marketable Securities 0.0 -75.1 -3.5 Other Investing Transactions 0.0 -28.4 -17.3 Cash Flow from Investing -55.5% -269.2% -34.2% Financing Change in Short-term Debt 0.0% 0.0% 0.0% Increase in Long-term Debt 0.4 0.8 0.3 Issue of Capital Stock 82.5 1.7 Decrease in Long-term Debt -85.0 -2.7 -27.6 Repurchase of Capital Stock -1.5 0.0 -21.4 Dividends - 10.9 0.0 -46.1 Other Financing Transactions 0.0 0.0 0.6 Cash Flow from Financing -46.1% 155.5% -59.7% Net Change in Cash -1.6% 13.7% 6.1% Growth in Revenues 5.7% 23.0% 7.7% -39.3% 5.9 -40.6 -74.0% -153.4% -17.5 23.2 -147.7% 0.0 7.9% 24.0 6.7 -3.1 -26.9 -43.5 9.8 -25.1% 0.9% 8.6% 0.0% 0.5 13.5 -1.2 0.0 -11.5 1.9 49.6% 1.9% 28.3% 4 5 76.5% 38.0 2.3 116.8% -6.8 -7.4 12.6 -15.2 100.0% 97.6% 23.3 3.9 124.8% -8.5 -58.4 39.9 2.2 100.0% Common-size Statements of Cash Flows for Selected Companies 1 2 3 Operations Net Income 38.6% 45.4% 62.4% Depreciation 55.2 37.7 22.3 Other 24.3 -5.0 11.6 Working Capital from Operations 118.1% 78.1% 96.3% (Increase) Decrease in Accounts Receivable -4.8 -12.4 -7.8 (Increase) Decrease in Inventories - 15.1 -14.4 -3.1 Increase (Decrease) in Accounts Payable 0.0 12.4 2.9 Current Liabilities -1.3 36.3 11.7 Cash Flow from Operations 100.0% 100.0% 100.0% Investing Fixed Assets Acquired -64.0% - 165.7% -13.4% Change in Marketable Securities 0.0 -75.1 -3.5 Other Investing Transactions 0.0 -28.4 -17.3 Cash Flow from Investing -55.5% -269.2% -34.2% Financing Change in Short-term Debt 0.0% 0.0% 0.0% Increase in Long-term Debt 0.4 0.8 0.3 Issue of Capital Stock 82.5 1.7 Decrease in Long-term Debt -85.0 -2.7 -27.6 Repurchase of Capital Stock -1.5 0.0 -21.4 Dividends - 10.9 0.0 -46.1 Other Financing Transactions 0.0 0.0 0.6 Cash Flow from Financing -46.1% 155.5% -59.7% Net Change in Cash -1.6% 13.7% 6.1% Growth in Revenues 5.7% 23.0% 7.7% -39.3% 5.9 -40.6 -74.0% -153.4% -17.5 23.2 -147.7% 0.0 7.9% 24.0 6.7 -3.1 -26.9 -43.5 9.8 -25.1% 0.9% 8.6% 0.0% 0.5 13.5 -1.2 0.0 -11.5 1.9 49.6% 1.9% 28.3%