1 (11 marks) Specialty Chocolates Ltd. and Granola Inc. are both speciality food chains. The two companies report these figures: Specialty Chocolates Ltd. Income Statement Fiscal Year 2020 Fiscal Year 2019 Revenues $543,000 $708,000 Costs and Expenses Cost of goods sold $475,000 $598,000 General and administrative expenses $68,000 $55,000 Specialty Chocolates Ltd. Balance Sheet Fiscal Year 2020 Fiscal Year 2019 Current assets Cash $17,000 $28,000 Accounts receivable $27,000 $30,000 Inventories $24,000 $29,000 Granola Inc. Income Statement Fiscal Year 2020 Fiscal Year 2019 Revenues $7,787,000 $6,369,000 Costs and Expenses Cost of goods sold $3,179,000 $2,605,000 General and administrative $2,948,000 $2,363,000 expenses Granola Inc. Balance Sheet Fiscal Year 2020 Fiscal Year 2019 Current assets Clash $313,000 $174,000 Accounts receivable $224.000 $191,000 Inventories $636,000 $546.000 THMG 310-001, Spring 2022 Assignment 4 Chooters 75 8 Total-64 marks Due: Friday, March 11, 2022 Required 1. Calculate the gross profit, gross profit percentage, inventory turnover and days in inventory for 2020 for each company. 2. Based on the results from requirement 1, which company looks more profitable? 3. Based on the results from requirement 1, which company seems to be better managing inventory? What is the risk of high inventory turnover and risk of low inventory turnover