Problem $5-25$A $($Algo$)$ Using ratios to make comparisons LO $5-5$

The following accounting information pertains to Boardwalk Taffy and Beach Sweets. The only difference between the two com$/$ is that Boardwalk Taffy uses FIFO, while Beach Sweets uses LIFO.

Required

a$-1.$ Compute the gross margin percentage for each company.

b$-1.$ For each company, compute the inventory turnover ratio and prices in relation to its cost.

b$-1.$ For each company, compute the inventory turnover ratio and the average days to sell inventory.

Complete this question by entering your answers in the tabs below.

Identify the company that appears to be charging the higher prices in relation to its cost.

Problem $5-25$A $($Algo$)$ Using ratios to make comparisons LO $5-5$

The following accounting information pertains to Boardwalk Taffy and Beach Sweets. The only difference between the two companies is that Boardwalk Taffy uses FIFO, while Beach Sweets uses LIFO.

that Boardwalk Taffy uses FIFO, while Beach Sweets uses LIFO.

Re

a$-2.$ Identify the company that appears to be charging the higher prices in relation to its cost.

b$-2.$ Identify the company that appears to be incurring the higher financing cost.

Problem $5-25$A $($Algo$)$ Using ratios to make comparisons LO $5-5$

The following accounting information pertains to Boardwalk Taffy and Beach Sweets. The only difference between the two companies is that Boardwalk Taffy uses FIFO, while Beach Sweets uses LIFO.