You have recently been hired as an analyst and asked to compare companies in the retail Industry. Based on total sales, you select three small companies (1, 2 and 3), four medium-sized companies (4.5.6. and 7), and three large companies (8.9, and 10). For each of these companies, you gather data on their gross profit and net sales revenue. Your task is to determine which of these companies might make a good investment based on the gross profit ratio. The bar chart below shows each company's gross profit and net sales, along with a line that graphs the gross profit ratio. Answer the following questions. Gross Profit, Net Sales, and Gross Profit Ratio $300,000,000 80.00% $200,000,000 Net Sales 40.00% $100,000,000 So 0.00% Company 1 Company 3 Company 4 Company 8 Company 9 Company 10 Company 2 Company 5 Company 6 mpany? Gross Profit Net Sales -Gross Profit Ratio Click here to open the graphis in a new tab. Required: 1. Which company has the lowest net sales? 2. Which company has the highest dollar amount of gross profit? 3. Which company has the highest gross profit ratio? 4. Which company has the lowest gross profit ratio? 5. Company 7 has gross profit of $70 million and net sales of $150 million. What is the gross profit ratio for that company? (Round your answer to 1 decimal place.) Gross Profit Ratio 6. Based only on the gross profit ratio, which company would you select for your investment Mitchell's Specialties sells high-end furniture (dressers, chairs, sofas, and tables). The company has been in business for several years. Based on its experience, management projects next year's sales prices of year-end Inventory using the trend in monthly sales prices during the current year. Presented below are those trends in sales prices for each of its four types of Inventory, as well as next year's projected sales price. Also presented are the number of units of ending Inventory and the average cost of each of those units. Average Monthly Sales Prices and Projections $2.676 $3,000 $2,500 $2,000 $1,500 $1,177 $1,000 $500 46870 SO ten July January March June February Dressers Chairs Sofas Tables August September October November December Projection Units of Ending Inventory 75 Average Unit Cost of Ending Inventory $1,670 $1,540 40 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 $810 30 20 20 $320 0 Dressers Chairs Sofas Tables Dressers Chairs Sofas Tables Click here to open the graphs in a new tab. Required: 1. Which type of Inventory has seen the greatest growth in sales prices over the current year? 2 Which type of Inventory has seen the greatest decline in sales prices over the current year? 3. Based on the trend lines provided, for which inventory Items does management project to sell below its average unit cost in the following year (Hint: Compare projected sales prices to the bar chart showing average unit cost)? 4. Prepare the year-end adjusting entry to record Inventory using the lower of cost or net realizable value method (Hint: Be sure to account for the number of units of ending Inventory in your calculation). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Which type of inventory has seen the greatest growth in sales prices over the current year? Dressers Chairs Sofas Tables Required Required 2 >