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		$	75,000				$	75,000
Accounts receivable			330,000					330,000
Merchandise inventory			235,000					214,000
Accounts payable			215,000					215,000
Cost of goods sold			1,339,500					1,391,000
Building			400,000					400,000
Sales			1,800,000					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.

Compute the gross margin percentage for each company. (Round your answers to 1 decimal place.)

	Gross Margin
Boardwalk Taffy		%
Beach Sweets		%

Identify the company that appears to be charging the higher prices in relation to its cost.

Higher prices

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.)

	Inventory Turnover Ratios		Average Days
Boardwalk Taffy		times		days
Beach Sweets		times		days

Identify the company that appears to be incurring the higher financing cost.

Higher financing cost