Trans Canada Motors Ltd. and X Country Trucks Inc. are competitors. The companies reported the following amounts, in millions. In January 2017, you wish to make an investment in one of these companies. Results for 2016 are not yet available.

Requirements
1. Compute both companies' gross profit percentage and their rates of inventory turnover during 2015 and 2014.
2. Can you tell from these statistics which company should be more profitable in percentage terms? Why? What other important category of expenses do the gross profit percentage and the inventory turnover ratio fail to consider?

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Trans Canada Motors Ltd. Statement of Earnings Fiscal Years 3 (Amounts in millions) 4 Net sales 5 Cost of sales 6 Selling, general, and administrative e 2015 $ 84.2 63.4 12.2 2014 $73.6 55.2 11.3 2013 68.9 52.6 11.2 Trans Canada Motors Ltd. Balance Sheet Year-End 3 (Amounts in millions) 4 Assets 2015 2014 2013 5 Cash and cash equivalents 6 Accounts receivable S 11.3 13.4 8.0 $ 16.4 10.9 7.8 13.9 9.9 6.9 7 Inventories X Country Trucks Inc. Statement of Operations Fiscal Years 2014 $19.3 13.7 3 (Amounts in millions) 2015 S24.0 15.9 3.0 2013 13.9 9.9 1.9 4 Net sales 5 Cost of sales Selling, general, and administrative e 6 2.4 X Country Trucks Inc. Balance Sheet Year-End 2014 3 (Amounts in millions) 4 Assets 2015 2013 $9.4 6.0 0.4 5 Cash and cash equivalents 6.4 S 3.5 0.9 6 Accounts receivable 7 Inventories 0.3