Question: Below are selected data from two companies in the retail grocery industry. Company A Company B 2022 2021 2022 2021 Sales $ 76,000 $ 78,315
Below are selected data from two companies in the retail grocery industry. Company A Company B 2022 2021 2022 2021 Sales $ 76,000 $ 78,315 $ 57,491 $ 55,917 Cost of Sales 60,850 62,311 54,141 53,015 Gross profit 15,150 16,004 3,350 2,902 Inventory 6,135 6,690 2,263 2,902 Total Assets 47,378 47,813 44,862 45,853 Required a. Compute the gross profit margin for each company for each year. b. Compute the common-size inventory ratio for each company for each year. c. Compute the inventory turnover ratio for each company for 2022. d. Compute the days average inventory outstanding for each company for 2022. e. Based on your calculations above, how would you assess the inventory management of the two companies? Explain
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