Selected data for Sorenta, Inc and New World Corp, two companies in the same industry, are presented below: Sorenta, Inc New World Corp Sales $50,000 $80,000 Cost of goods sold 30,000 50,000 Average inventory balance 5,000 5,000 Based on this data, which statement below is true?
a. New World Corp sells its inventory faster than Sorenta, Inc.
b. Sorenta, Inc. has a lower gross profit ratio than New World Corp.
c. Sorenta, Inc. has lower storage costs and a lower investment in inventory than New World Corp.
d. New World Corp has a higher net income than Sorenta, Inc.
a
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Answer the following statement true (T) or false (F)
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