Selected Data for Sorenta,Inc A)Sorenta,Inc

Multiple Choice

Selected data for Sorenta,Inc.and New World Corp. ,two companies in the same industry,are presented below: Based on this data,which of the following statements is true?
$$\begin{array} { l r r } & \text { Sorenta, Inc. } & \text { New World Corp. } \\\text { Sales }& \$ 50,000 & \$ 80,000 \\\text { Cost of goods sold } & 30,000 & 50,000 \\\text { Average inventory balance } & 5,000 & 5,000\end{array}$$

A) Sorenta,Inc.has a lower gross profit ratio than New World Corp.
B) New World Corp.has a higher net income than Sorenta,Inc.
C) New World Corp.sells its inventory faster than Sorenta,Inc.
D) Sorenta,Inc.has lower storage costs and a lower investment in inventory than New World Corp.