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Muffin Mania Ltd. and Coffee Shop Inc. are both specialty food chains. The two companies reported these figures, in thousands (Click the icon to view

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Muffin Mania Ltd. and Coffee Shop Inc. are both specialty food chains. The two companies reported these figures, in thousands (Click the icon to view Muffin Mania's financial statements.) (Click the icon to view Coffee Shop's financial statements.) Requirements 1. Compute gross profit percentage and the rate of inventory turnover for Muffin Mania and Coffee Shop for 2020. 2. Based on these statistics, which company looks more profitable? Why? What other expense category should we consider in evaluating these two companies? CCIDE Requirement 1. Compute gross profit percentage and the rate of inventory turnover for Muffin Mania and Coffee Shop for 2020. (Round gross profit percentage to one decimal place, X.X%, and the inventory turnover rate to one decimal place, X.X.) Gross profit percentage Company Inventory turnover rate times Muffin Mania- Coffee Shop times % % Data table (Thousands) Revenues: Muffin Mania Ltd. Statement of Operations Net sales Costs and Expenses: Cost of goods sold General and administrative expenses Muffin Mania Ltd. 69 2020 2019 450 $ 703 360 594 60 56 I Data table Cost of goods sold General and administrative expenses Muffin Mania Ltd. Balance Sheet January 31 (Thousands) Assets Current assets: Cash and cash equivalents Receivables Inventories 360 60 2020 14 21 22 594 56 2019 $ 26 32 30 Data table (Thousands) Net sales Cost of goods sold Selling, general, and (Thousands) Coffee Shop Inc. Statement of Earnings administrative expenses Coffee Shop Inc. Balance Sheet Print 2020 2019 $ 8,000 $ 6,350 3,000 2,597 2,975 2,350 2020 2019 Done - X ng the ross Data table Cost of goods sold Selling, general, and administrative expenses Coffee Shop Inc. Balance Sheet (Thousands) Assets Current assets: I Cash and cash equivalents Receivables, net Inventories 3,000 2,975 2020 312 221 780 2,597 2,350 2019 $ 172 189 470

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