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. Boardwalk Taffy Beach Sweets Cash $ 120,000 $ 120,000 Accounts receivable 480,000 480,000 Merchandise inventory 350,000 300,000 Accounts payable 360,000 360,000 Cost of goods sold 2,000,000 2,050,000 Building 500,000 500,000 Sales 3,000,000 3,000,000 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.