Two similar companies use different inventory valuation methods. LL Co. uses the LIFO inventory valuation method, and FF Co. uses FIFO. Ignore the effect of income taxes on each company.

Income Statements LL Co. FF Co.

Sales $ 35,000 $35,000 Cost of goods sold (20,350) (18,200)

Gross profit 14,650 16,800 Selling, general, and administrative (6,000) (6,000)

Income before interest expense 8,650 10,800 Interest expense (12%) (960) (960)

Income before taxes $ 7,690 $ 9,840 Balance Sheets Total current assets 10,320 12,870 Fixed assets (net) 29,000 31,000 Total assets $ 39,320 $43,870 Equities Current liabilities $ 3,120 $ 3,270 Long-term liabilities 8,000 8,000 Total liabilities 11,120 11,270 Shareholders’ equity 28,200 32,600 Total equities $ 39,320 $43,870 Required Using the financial statements from LL Co.and FF Co.,calculate the following ratios:

a. Current ratio

b. Average sales per day

c. Gross profit percentage