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 $ 70,000 330,000 250,000 210,000 1,175,000 450,000 2,000,000 Beach Sweets $ 70,000 330,000 214,000 210,000 1,369,600 450,000 2,000,000 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. 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 % (Required A1 Required A2 > 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 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 Requ led B1 Required B2 For each company, compute the inventory turnover ratio and the average days to sell inventory. (Use 365 days i Round your "inventory Turnover Ratios" to 1 decimal place and all other answers to the nearest whole number.) Inventory Turnover Ratios times Boardwalk Taffy Beach Sweets Average Days days days times The following accounting information pertains to Boardwalk Taffy and Beach Sweets. The only difference between the two companie is that Boardwalk Taffy uses FIFO, while Beach Sweets uses LIFO. Boardwalk Taffy Beach Sweets Cash $ 70,000 $ 70,000 Accounts receivable 330,000 330,000 Merchandise inventory 250,000 214,000 Accounts payable 210,000 210,000 Cost of goods sold 1,175,000 1,369,600 Building 450,000 450,000 Sales 2,000,000 2,000,000 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. 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
