KW Steel Corp. uses the LIFO method of inventory valuation. Waretown Steel, KW's major competitor, instead uses the FIFO method. The following are excerpts from each company's 2008 financial statements:

Required:
1. Compute each company’s 2008 gross margin percentage and inventory turnover using cost of goods sold as reported by each company. (Round answers to one decimal place.)
For each ratio, how does KW Steel compare to Waretown Steel?
2. Restate KW’s cost of goods sold and inventory balances to the FIFO basis. On the basis of its adjusted data, precompute KW’s gross margin percentage and inventory turnover.
Explain how the revised figures alter your earlier comparisons.

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KW Steel Corp. ($ in millions) 2008 2007 2008 Waretown Steel 2007 Total inventories $ 797.6 $ 692.7 $ 708.2 $ 688.6 LIFO reserve 378.0 334.9 Sale 4,284.8 4,029.7 3,584.2 3,355.8 Cost of goods sold 3,427.8 3,226.5 2,724.0 2,617.5