J. Development of prepackaged software
Investment in innovation is extremely important in software industry. So the R&D/Sales is high. And their products are actually technology, so there is no inventory and gross margin is very high, which is close to 91%. All facilities they need are an office building and computers. The net plant& equipment is low.
A .On-line retailer
Receivables are zero because individuals pay cash or credit card when they are shopping online. Receivables are negligible for on-line retailers.
D. Major passenger airline
The net plant & equipment is high because Major passenger airlines have many planes as their major assets to carry passengers and make profits. The unearned revenue is high because people usually book their tickets and pay before they complete their journey.
C. International hotel chain
International hotel chain mainly provides services and rooms for people, so the inventory is very low and negligible. And money is collected from credit cards after people leave the hotel, so there is no unearned revenue. The major assets are buildings, so the net plant& equipment is high.
I.Temporary staffing agency
A staffing agency is a service that matches the labor needs of their corporate clients with individuals who have the skill sets necessary to meet those needs. Since it is a service industry, there is no inventory. And investment is R&D is not necessary.
B. Supermarket grocery retailer v.s. H. Warehouse club for food and general merchandise
They are very similar industry with high net plant &equipment and zero unearned revenue, but the inventory is higher for warehouse club because they keep wholesale quantities of products. Compared with supermarket grocery retailers, their gross margin is lower but net profit margin is higher.
F. Pharmaceutical company V.S. G. Manufacturer of electronic communications equipment
Although the common size