Requirements

Sweet Treats, Inc. Income Statements (Adapted) Years Ended December 31 (Amounts in millions) Revenues: Net sales 2018 2017 $650 $711 2018 $6,000 5,100 2,930 2017 $6,369 2,603 2,370 520 67 596 54 Coffee Bean Corporation Income Statements (Adapted) Years Ended December 31 (Amounts in millions) Net sales Cost of goods sold Selling, general, and administr Coffee Bean Corporation Balance Sheets (Adapted) 31-Dec (Amounts in millions) Assets Current assets: Cash and temporary investme Receivables, net Inventories 2018 Costs and Expenses: Cost of goods sold Selling, general, and administrat Sweet Treats, Inc. Balance Sheets (Adapted) 31-Dec (Amounts in millions) Assets Current assets: Cash and cash equivalents Receivables Inventories 2017 2018 2017 $318 218 500 $178 188 700 $10 22 $32 35 30 70 Requirements 1. Compute gross margin percentage and the rate of inventory turnover for Sweet Treats and Coffee Bean for 2018. 2. Based on these statistics, which company looks more profitable? Why