Comparison of Gross Profit Percentages and Inventory Turnover JCPenney and Kmart are competitors in the retail business, although they target slightly different markets. The gross margin for each company and average inventory follow for the indicated years (both have January year-ends; 2003 refers to the year ending in January of 2003). JCPenney 2003 2000 (in millions) 1995 Retail sales $32,347 $32,510 $20,380 Cost of goods sold* 22,573 23,374 13,970 Gross profit 9,774 9,136 6,410 Average inventory 4,938 6,004 3,711 Kmart 2003 Retail sales 30,762 Cost of goods sold* 26,258 Gross profit 4,504 Average inventory 5,311 2000 (in millions) 1995 $35,925 $34,025 28,102 25,992 7,823 8,033 6,819 7,317 *Both companies classify costs of occupancy, buying, and warehousing with cost of goods sold. Calculate gross profit percentages and inventory turnovers for 2003, 2000, and 1995 for each company and compare them. What trends do you observe? Which company appears to perform better? To what extent do their different performances seem to relate to their relative positions in the retail market?