Refer to the CVS annual report in the Supplement to Chapter 5 and to the following data (in millions) for Walgreens in 2008: net sales, $59,034; cost of sales, $42,391; total operating expenses, $13,202l and inventories, $7,249. Determine which company-CVS or Walgreens-had more profitable merchandising operations in 2008 by preparing a schedule that compares the companies in terms of net sales, cost of sales, gross margin, total operating expenses, and income from operations as a percentage of sales. In addition, for each company, compute inventory as a percentage of the cost of goods sold. Which company has the highest prices in relation to costs of sales? Which company is more efficient in its operating expenses? Which company manages its inventory better? Overall, on the basis of the income statement, which company is more profitable? Explain your answers.