Question: Chipotle 2019 Annual Report and Proxy Statement.pdf Potbelly - 2019 Annual Report.pdf Use the 2019 Annual Reports for Chipotle and Potbelly Corporation.Be sure to use

Chipotle 2019 Annual Report and Proxy Statement.pdf

Potbelly - 2019 Annual Report.pdf

Use the 2019 Annual Reports for Chipotle and Potbelly Corporation.Be sure to use the audited financial statements and notes in Item 8 of each report to answer the questions.Do not use excerpts or summaries from other parts of the report.Calculate ratios using the information in the financial statements.Do not use other sources.

1.Calculate each company's gross profit ratio for 2019.Show your work.Which company has the more favorable ratio?Does the company with the favorable gross profit ratio also have the favorable profit margin?Does this surprise you?Why or why not?

2.If Potbelly had understated inventory at year-end 2018, what would have been the effect, if any, on Net Income in 2019?

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