chocolate treats ltd. and coffee bars inc. are both specialty food chains. The two companies reported these figures, in thousands:

chocolate treats ltd.

statement of operations

fiscal year

(thousands). 2020. 2019

revenue:

net sales $543 $708

gross and expenses:

cost of goods sold $475 598

GENERAL AND ADMINISTRATIVE 68 55

EXPENSES

CHOCOLATE TREATS LTD

BALANCE SHEET

JANUARY 31,

(THOUSANDS) 2020 2019

ASSETS:

CURRENT ASSETS:

CASH AND CASH EQUIVALENTS $17 $28

RECEIVABLES 27 30

INVENTORIES 24 29

COFFE BARS INC.

STATEMENT OF EARNINGS

FISCAL YEAR

(THOUSANDS) 2020 2019

NET SALES $7,787 $6,369

COST OF GOODS SOLD 3,179 $2,605

SELLING,GENERAL AND ADMINISTRATIVE EXPESES 2,948 2,363

COFFEE BARS INC.

BALANCE SHEET

YEAR END

(THOUSANDS) 2020 2019

ASSETS:

CURRENT ASSETS:

CASH AND TEMPORARY INVESTMENTS $313 $174

RECEIVABLES, NET 224 191

INVENTORIES 636 546

USE GROSS PROFIT PERCENTAGE AND INVENTORY TURNOVER TO EVALUATE TWO COMPANIES

REQUIREMENT

1. COMPUTE THE GROSS PROFIT PERCENTAGE AND THE RATE OF INVENTORY TURNOVER FOR CHOCOLATES TREATS AND FOR COFFEE BARS FOR 2020.

2. BASED ON THIS STATISTICS, WHICH COMPANY BOOKS MORE PROFITABLE? WHY? WHAT OTHER EXPENSES CATEGORY SHOIULD WE CONSIDER IN EVALUATING THESE TWO COMPANIES?

(thousands)