Question
The two companies reported these figures Chocolate treats Ind Statement of operations (THOUSANDS) REVENUES: FISCAL YEAR 2020 2019 NET SALES COSTS AND EXPENSES COST
The two companies reported these figures Chocolate treats Ind Statement of operations (THOUSANDS) REVENUES: FISCAL YEAR 2020 2019 NET SALES COSTS AND EXPENSES COST OF GOODS SOLD $543 $708 475 598 GENERAL AND ADMINISTRATIVE EXPENSES CHOCOLATE TREATS LTD BALANCE SHEET 68 55 (THOUSANDS) ASSETS CURRENT ASSETS CASH AND CASH EQUIVALENTS JANUARY 31, 2020 2019 RECIEVABLES 517 528 INVENTORIES 27 30 24 29 COFFEE BARS INC STATEMENT OF EARNINGS (THOUSANDS) NET SALES COSTS OF GOODS SOLD FISCAL YEAR 2020 2019 4 $7,787 $6,969 SELLING GENERAL AND ADMINISTRATIVE EXPENSES 3,179 2,605 2,948 2,363 COFFE BARS INC. BALANCE SHEET (THOUSANDS) ASSETS CURRENTS ASSETS CASH AND TEMPORARY INVESTMENT RECEIVABLES NET INVENTORIES YEAR END 2020 2019 5313 224 636 $174 191 546 USE GROOS PROFIT PERCENTAGE AND INVENTORY TURNOVER TO EVALUATE TWO COMPANIES REQUIEMENT 1. COMPARE THE GROOS PROFIT PERCENTAGE AND THE RATE OF INVENTORY TURNOVER FOR CHOCOLATE TREATS AND FOR COFFEE BARS FOR 2020. 2. BASED ON THESE STATISTICS, WHICH COMPANY LOOKS MORE PROFITABLE?WHY?WHAT OTHER EXPENSE CATEGORY SHOULD WE CONSIDERS IN EVALUATING THERE TWO COMPANIES?
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