Problem 14.8 (LO)

Problem 14.8 (LO3) Comparing Bell and Gangway Financial information for Bell and Gangway (two computer manufacturers) follows: Bell Gangway Year Ended Year Ended Year Ended Year Ended (in millions) 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Sales $61,133 $57,420 $8,922 $8,457 Cost of sales 49,462 47,904 7,316 6,951 Gross margin $11,671 $ 9,516 $1,606 $1,506 Inventory $ 1,180 $ 660 $ 400 $ 351 Required a. Compare Bell and Gangway in terms of their percentage changes in sales and gross margin. b. Compare Bell and Gangway in terms of their gross margin percentages. c. Compare Bell and Gangway in terms of inventory turnover and days' sales in inventory d. In your opinion, which firm has had better financial performance? Support your answer using your calculations in parts a, b, and c