he following accounting information pertains to Boardwalk Taffy and Beach Sweets. The only difference between the two companies is that Boardwalk Taffy uses FIFO, while Beach Sweets uses LIFO.

Boardwalk Taffy Beach Sweets

Cash $ $80,000$ $ $80,000$

Accounts receivable $350,000350,000$

Merchandise inventory $235,000202,000$

Accounts payable $245,000245,000$

Cost of goods sold $1,128,0001,575,600$

Building $350,000350,000$

Sales $2,000,0002,000,000$

Required

a$-1.$ Compute the gross margin percentage for each company.

a$-2.$ Identify the company that appears to be charging the higher prices in relation to its cost.

b$-1.$ For each company, compute the inventory turnover ratio and the average days to sell inventory.

b$-2.$ Identify the company that appears to be incurring the higher financing cost.