Robert Groff, an equity analyst, is preparing a report on Crux Corp. As part of his report, Groff makes a comparative financial analysis between Crux and its two main competitors, Rolby Corp. and Mikko Inc. Crux and Mikko report under US GAAP, and Rolby reports under IFRS. ] * Inls does not match the change in the inventory valuation allowance because the valuation allowance is reduced to reflect the valuation allowance attached to items sold and increased for additional necessary write-downs. EXHIBIT 2 Industry Information To compare the financial performance of the three companies, Groff decides to convert LIFO figures into FIFO figures, and adjust figures to assume no valuation allowance is recognized by any company. After reading Groff's draft report, his supervisor, Rachel Borghi, asks him the following questions: Question 1 Which company's gross profit margin would best reflect current costs of the industry? Question 2 Would Rolby's valuation method show a higher gross profit margin than Crux's under an inflationary, a deflationary, or a stable price scenario? Question 3 Which group of ratios usually appears more favorable with an inventory write-down? Crux's inventory turnover ratio computed as of December 31,2018 , after the adjustments suggested by Groff, is closest to: A. 5.67 . B. 5.83 . C. 6.13 . Rolby's net profit margin for the year ended December 31, 2018, after the adjustments suggested by Groff, is closest to: A. 6.01%. B. 6.20%. C. 6.28%