Cinnamon Roll, Inc., and Dunking Coffee Corporation are both specialty food chains. The two companies reported these figures, in millions:

Requirements
1. Compute the gross profit percentage and the rate of inventory turnover for Cinnamon Roll, Inc., and Dunking Coffee Corporation for 2012.
2. Based on these statistics, which company looks more profitable? Why? What other expense category should we consider in evaluating these twocompanies?

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Cinnamon Roll, Inc. Income Statements (Adapted) Years Ended December 31 (Amounts in millions) Revenues: 2012 2011 Net sales S542 $704 Costs and Expenses: Cost of goods sold Selling, general, and administrative e 474 67 592 50 innamon Roll, Inc. Balance Sheets (Adapted) December 31 (Amounts in millions) 2012 2011 Assets Current assets: Cash and cash equivalents Receivables $16 27 $26 36 Dunking Coffee Corporation Income Statements (Adapted) Years Ended December 31 Amounts in millions Net sales Cost of goods sold Selling, general, and administrative expenses 2012 2011 S7,777 S6,369 3,180 2,600 3,000 2,350 Dunking Coffee Corporation Balance Sheets (Adapted) December 31 Amounts in millions) 2012 2011 Assets Current assets: Cash and temporary investments Receivables, net Inventories $318$171 194 541 227 625