Muffin Mania, Inc., and La Crème 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 Muffin Mania and La Crème Coffee 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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Muffin Mania, Inc. Income Statements (Adapted) Years Ended December 31 2012 2011 (Amounts in millions) Revcnucs Net sales S540 $705 Costs and Expenses: Cost of goods sold Selling, general, and administrative expenses 470 61 595 53 Mutfin Mania. Inc. Balance Sheets (Adapted) December 31 (Amounts in millions) 20122011 Assets Current assets: Cash and temporary investments Receivables luventories $21 25 18 $24 40 30 La Crème 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 $7,710 $6,400 3,1702,600 2,975 2,360 La Crème Coffee Corporation Balance Sheets (Adapted) December 31 (Amounts in millions) 20122011 Assets Current assets: Cash and temporary investments Receivables, net Inventories 5320 $175 220 195 630 540