Problem 5-25A Using ratios to make comparisons LO 5-5 The 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. Cash Accounts receivable Merchandise inventory Accounts payable Cost of goods sold Building Sales Boardwalk Taffy $ 80,000 350,000 245,000 200,000 1,029,000 350,000 1,800,000 Beach Sweets $ 80,000 350,000 182,000 200,000 1,437,800 350,000 1,800,000 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. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 Compute the gross margin percentage for each company. (Round your answers to 1 decimal place.) Gross Margin % Boardwalk Taffy Beach Sweets % Problem 5-25A Using ratios to make comparisons LO 5-5 The 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. Cash Accounts receivable Merchandise inventory Accounts payable Cost of goods sold Building Sales Boardwalk Taffy $ 80,000 350,000 245,000 200,000 1,029,000 350,000 1,800,000 Beach Sweets $ 80,000 350,000 182,000 200,000 1,437,800 350,000 1,800,000 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. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 Identify the company that appears to be charging the higher prices in relation to its cost. Higher prices Problem 5-25A Using ratios to make comparisons LO 5-5 The 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. Cash Accounts receivable Merchandise inventory Accounts payable Cost of goods sold Building Sales Boardwalk Taffy $ 80,000 350,000 245,000 200,000 1,029,000 350,000 1,800,000 Beach Sweets $ 80,000 350,000 182,000 200,000 1,437,800 350,000 1,800,000 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. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 For each company, compute the inventory turnover ratio and the average days to sell inventory. (Use 365 days in a year. Round your "Inventory Turnover Ratios" to 1 decimal place and all other answers to the nearest whole number.) Boardwalk Taffy Beach Sweets Inventory Turnover Ratios times times Average Days days days Problem 5-25A Using ratios to make comparisons LO 5-5 The 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. Cash Accounts receivable Merchandise inventory Accounts payable Cost of goods sold Building Sales Boardwalk Taffy $ 80,000 350,000 245,000 200,000 1,029,000 350,000 1,800,000 Beach Sweets $ 80,000 350,000 182,000 200,000 1,437,800 350,000 1,800,000 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. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 Identify the company that appears to be incurring the higher financing cost. Higher financing cost