Crispy Donut Ltd. and Coffee Bean Inc. are both specialty food chains. The two companies reported these figures, in thousands:

Requirement 1. Compute gross profit percentage and the rate of inventory turnover for Crispy Donut and Coffee Bean for 2020. (Round gross profit percentage to one decimal ppace, X.X%, and the inventory turnover rate to one decimal place, X.X.)

Requirement 2: Based on these statistics, which company looks more profitable? Why? What other expense category should we consider in evaluating these two companies?

Crispy Donut Ltd. Statement of Operations (Thousands) 2020 2019 Revenues: Net sales en 500 $ 705 Costs and Expenses: Cost of goods sold General and administrative expenses 450 597 62 53 Crispy Donut Ltd. Balance Sheet January 31 (Thousands) 2020 2019 Assets Current assets: $ 14 $ 30 Cash and cash equivalents Receivables 23 85 Inventories 18 32 Coffee Bean Inc. Statement of Earnings (Thousands) 2020 2019 Net sales $ 7,700 $ 6,350 3,080 2,618 Cost of goods sold Selling, general, and administrative expenses 2.900 2,333 Coffee Bean Inc. Balance Sheet (Thousands) 2020 2019 Assets Current assets: $ 317 $ 169 Cash and cash equivalents Receivables, net 230 193 Inventories 682 550