Payless ShoeSource and Dillard's both offer men's formal footwear. Payless offers lower$-$ to middle$-$priced footwear, whereas Dillard's

offers more specialized, higher$-$end footwear. The average price for a pair of shoes in Payless may be about $$50,$ whereas the average

price in Dillard's may be about $$175.$ The types of shoes offered by Dillard's are not sold by many other stores. Suppose a Payless

store and a Dillard's store report the following amounts for men's shoes in the same year $($company names are disguised$)$:

Required:

For Company $1$ and Company $2,$ calculate the inventory turnover ratio.

For Company $1$ and Company $2,$ calculate the gross profit ratio.

After comparing the inventory turnover ratios and gross profit ratios, which company do you think is Payless?

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Required $1$

Required $3$

For Company $1$ and Company $2,$ calculate the inventory turnover ratio.