A grocery store and a jewelry store provide the following vertical analyses of certain accounts: Required Identify
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Identify which company is likely the grocer and which is likely the jewelry store. Explain the reasons for your conclusions.
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Gross profit Operating expenses Net income Inventory Property and equipment Company A 26.0% 22.2 3.8 30.4 57.8 Company B 55.2% 48.0 7.2 68.2 32.5
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Company B is the jewelry store A jewelry store would receive a higher profit margin on it...View the full answer
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