A) Use the following key figures for Enterprise Co., Field Co., and Trade Co.

($ in millions)

Enterprise Co. Field Co. Trade Co.

Net Sales $ 526,801 $ 2,656,949 $ 464,651

Cost of Sales 371,752 1,916,366 363,142

Compute the gross margin ratio for each of the three companies.

1. Explain whether Enterprises gross margin ratio better or worse than that for (a) Field? (b) Trade? The key word here is explain.

B) Use the following key figures for Move Co.

($ in millions)

2022 2021 2020

Inventory $ 236,988 $ 240,066 $ 252,496

Cost of Sales 1,061,900 1,023,100 1,091,800

For the most recent two years (2022 & 2021), compute Moves (a) inventory turnover and (b) days sales in inventory. Format your Inventory TO as a number of times and Days Sales as a number of days. Use one decimal place.

1. Explain whether the change in Moves turnover is favorable or unfavorable.
2. Did the current year inventory turnover for Move underperform or outperform the industrys average turnover of 4.25. Explain

C) Use the following key figures for Biz Co. and Line Co.

($ in millions)

Biz Co. Line Co.

Current year Prior year Current year Prior year

Accounts receivable $ 115,302 $ 89,294 $ 23,732 $ 29,227

Net sales 2,656,949 1,991,139 363,015 350,871

Compute days sales uncollected (rounded to one decimal) for the current year and the year prior year for Biz and Line.

1. Which company had more success collecting receivables. Explain.