Question 3 (Basic strategies) You are considering investing in the retail sector and have identified two companies for further analysis. Financial information for the two companies is as follows: (in thousands) Company A Company B Sales $1,290,000 $1,349,000 Cost of goods sold 670,800 984,770 Net income 101,600 62,400 Average inventory 223,200 154,700 Average total assets 811,323 498,293 (a) Calculate and compare the following ratios for the two companies: (Round answers to 1 decimal place, e.g. 18.4 or 15.3%.) i. Return on assets ii. Gross margin iii. Profit margin iv. Inventory turnover v. Days to sell inventory Company A Company B Return on assets Gross margin % % Profit margin 0% 0% Inventory turnover times times Days to sell inventory days days