306. The following information is for Z-Mart and its competition Diablo. Z-Mart Yr 1 Net sales Cost of sales $347,850 121,747 Z-Mart Yr 2 $365,418 146,167 Diablo Yr 1 $579,750 Diablo Yr 2 $664,395 318,862 312,265 Instructions: (1) Calculate the dollar amount of gross margin and the gross margin ratio for each company for both years. (2) Which company had the more favourable ratio each year? (3) Which company had the more favourable trend over the 2-year period? 307. Trekking Company reported the following data: Year 1 Cost of goods sold $347,600 Year 2 $379,650 Year 3 $443,900 Average inventory $85,000 $91,050 $98,350 (1) Calculate Trekking Company's merchandise turnover for each year. (2) Comment on the company's efficiency in managing its inventory. 308. Annie's Attic reported the following data: Year 1 Cost of goods sold $238,000 Year 2 $375,000 Year 3 $495,000 Average inventory $120,000 $150,000 $180,000 Instructions: (1) Calculate the days' sales in inventory for each year. (2) Comment on the trend in inventory management