Problem 14.8 (LO3) Comparing Bell and Gangway Financial information for Bell and Gangway (two computer manufacturers) follows: (in millions):

Bell:

Year Ended 12/31/2020 Year Ended 12/31/2019

Sales $61,133 $57,420

Cost of sales $49,462 $47,904

Gross margin $11,671 $9,516

Inventory $1,180 $660

Gangway:

Year Ended 12/31/2020 Year Ended 12/31/2019

Sales $8,922 $8,457

Cost of Sales $7,316 $6,951

Gross margin $1,606 $1,506

Inventory $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.