1. Health Products: The first firm is company A and the second firm is company B because company B has a higher gross profit and higher intangibles as seen in the financial data. This is due to the additional costs and expenses company A has in comparison to company B.
2. Beer: The first firm is company C and the second firm is company D because company C has higher fixed assets and company D has higher gross profit as seen in the financial data. This is due to firm C owning additional businesses and several major theme parks.
3. Computers: The first firm is company E and the second firm is company F because company F has a higher price earnings ratio as seen in the financial data. This is due to firm F’s retail strategy.
4. Books and Music: The first firm is company H and the second firm is company G because company H has more fixed assets and higher inventory, and company G has a higher inventory turnover ratio as seen in the financial data. This is due to company H having retail stores and company G selling solely through its web site.
5. Paper Products: The first firm is company J and the second firm is company I because company J has higher cost of goods sold and company I has a higher gross profit as seen in the financial data. This is due to company I being a smaller firm and company J having more costs and expenses.
6. Hardware and Tools: The first firm is company K and the second firm is company L because company L has higher SG&A expense and higher gross profit as seen in the financial data. This is due to company L selling via its own technical representatives and mobile franchise dealers.
7. Retailing: The first firm is company M and the second firm is company N because company M has less receivables and company N has higher gross profit as seen in the financial data. This is due to company N offering credit to its customers.
8. Newspapers: The first firm is company P and the second firm is company O because company P has