PAPER: We believe that Company I represents the Smaller Producer of printing papers and Company J represents the Worlds

Largest Market of Paper. Being the worlds largest paper maker indicates having a larger inventory, more cu rrent assets (esp. since it owns timberland and several facilities), and higher cost of goods sold than other paper makers. The inventory for Company J (10.9) is larger than the inventory for Company I (8.8); the current assets for Compan y J (32.6) are higher than that for Company I (27.2); and the cost of goods sold for Company J (82.9) is higher than that for Company I (75.3). We also expect t hat, as the worlds largest paper maker, their products will move on the marketpla ce better than a smaller producer of paper. Thus, Inventory Turnover should also be higher. Here, Company J (7.11) has a larger inventory turnover than Company I (6.75). Receivables turnover, which tells how many times accounts receivable s have been collected in a given period, should be higher for the worlds largest paper company than it would be for a small producer of specialty paper. Compan y Js (11.64) receivables turnover is higher than that for Company I (8.68). The facts also state that the worlds largest maker of paper has been rationalizin g capacity by closing inefficient mills, implementing cost-containment initiativ es, and selling nonessential assets. This implies that the company would have a larger asset turnover ratio than other paper companies. Company J (1.20) has a larger asset turnover ratio than Company I (.73). It is probable that since the small producer of paper has most of its product ma rketed under branded labels, that it would have a higher value of Intangibles, s uch as trademarks, than the larger company. Here, Company I (14.6) has an intang ibles value that is significantly higher than Company Js (1.9) intangible value. Based on the above analysis, we believe that Company I is the small