1. calculate Kroger's inventory, payables and PPE ratios for the two most recent years. Include Inventory Turnover, Average Days Inventory Outstanding, AP Turnover, Days Payable Outstanding, PPE Turnover and PPE Percent Used Up.

2. Prepare a gross margin analysis for the two most recent years for Kroger

3. What observations can you draw from your calculations?

supporting tile was found. Item 1. Financial Statements. THE KROGER CO. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (is millions, encepl per share am Sales Angaat 15 , A 17, 2013 28,168 Ap 11, $ 30.489 $ $ 72,033 $ 65,419 Operating expenses Merchandise costs, including advertising, warehousing, and transportation, excluding items shesin separately below Operating, general and administrative Rent Depreciation and amortization 22.007 23,551 5,297 204 617 55.00 12.90 50,990 11,125 200 591 1,370 820 559 2,146 1,460 Operating profit Other income (expense) Interest expense Non-service component of company-sponsored pension plan costs Gain (loss) on investments Gain on sale of businesses (135) (3091 (130) (4) (45) 19 790 368 (1) 61 176 Net camnings before income tax expense 1,061 180 2646 1.169 Income tax expense 241 93 319 820 2,032 1,050 Net earnings including noncontrolling interests Net income (loss) attributable to noncontrolling interests 287 (10) 1 S 819 5 2,031 $ 1.09 Net earnings attributable to The Kroger Co. 1.04 $ 0.37 Net earnings attributable to The Kroger Co. per basic common share MacBook Pro Soarch or tyne URL ! Apes Menu Sections 0 Search Facts D Data Tags More Filters Facts Inline XBRL Viewing features are minimal because no supporting file was found. Interest expense Non-service component of company sponsored pension plan costs Gain (less) on investments Gain on sale of businesses (135) (4) 19 (1) 61 176 Net earnings before income tax expense 1061 30 1,300 Income tax expense 341 91 14 1,050 138 13 181 18 31919 BRIE 15 15 11 15 181 | ||||||||| IEI IS 319 197 Net carmings including noncontrolling interests Net income (los) atributable to noncontrolling interests Net camnings attributable to The Kooper Ca Net camnings tributable to The Kroger Co. per basic common share Average number of common shares used in basic calculation Net earnings attributable to The Kroger Co. per diluted common share Average number of common shares used in diluted calculation The accompanying notes are an integral part of the Comelduned Financial Statements 5 2,031 1,059 717 779 101 2255 1.31 76 THE KROGER CO. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Latt 30 MacBook Pro urch or tyne URL THE KROGER CO. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (a millions) Net earnings including noncontrolling interests Se Quared Aguis, Aug 11 10 3019 820 $ 287 Tesatud A 1 August 11 319 2,032 $ 1.050 Other comprehensive income (loss) Change in pension and other postretirement defined benefit plans, net of income tax!!) Unrealized gains and losses on cash flow hedging activities, net of income tax) Amortization of unrealized gains and losses on cash flow hedging activities, net of income tax) Cumulative effect of accounting change 16 (55) lor (63) (146) Total other comprehensive income (loss) (453 (191) 899 (19) 2020 Comprehensive income 827 242 2,021 Comprehensive income (loss) attributable to non controlling interests (10) Comprehensive income attributable to The Kroger Co. 826 252 s (1) Amount is net of tax of S1 for the second quarter of 2020 and $2 for the second quarter of 2019. Amount is net of tax of S) for the first two quarters of 2020 and 55 for the first two quarters of 2019. (2) Amount is net of tax of 1 for the second quarter of 2020 and ($17) for the second quarter of 2019. Amount is net of tax of (510) for the first two quarters of 2020 and (526) for the first two quarters of 2019. (3) Amount is net of tax of si for the second quarter of 2019. Amount is net of tax of S for the first two quarters of 2020 and s for the first two quarters of 2019. (4) Related to the adoption of Accounting Sundards Update ("ASU) 2018-02, "Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain that forets from Accumulated Other Comprehensive Income." The accompanying notes are an integral part of the Consolidated Financial Statements. MacBook Pro XBRL viewing features are minimal because no supporting file was found. THE KROGER CO. CONSOLIDATED BALANCE SHEETS (und All wy 10 LIN 1:53 1. (I wil, el per ASSETS Current Cash and temporary cashme Store deposits in-transit Receivables FIFO investory LIFO reserve Prepaid and other current Total current IL (144 315 12.16 100 111 10 5514 10 Property, plant and get UN 19 God Others 41.50 45 Total As 5 LIABILITIES Currentes Custom-com det including in de finances 3 136 4 14 105 Accrued alles and we Other cables Total Lengtum debet including ligations under finance Defned income Pension and power Other lang MacBook Pro G Search or type URL . esc ( 9 & 7 0 # $ % 5 8 @ 6 3 4 Facts 70 e XBRL viewing features are minimal because no supporting file was found. Deferred mene Pension and portretirement benefit obligations Other long-term liabilities 1 S Total Liabilities Commitments and contingencies se Note? SHAREHOLDERS' EQUITY Preferred shares, 5100 per person, there withorised andmed Common shares, si per pershan,2,000 shares who 1.91 sharesised in 2000 w 2019 Additional paid-in capital Accumuled her comprehensive los Accumulated earnings Common shares in treasury, al cos, 1.123hares in 2000 1,130 hares i 2019 19 19 132 51 17.57 116 Total Shoes' Equity - The Koper Co. Nincelling interest Total Equity Tocal Litend quity The accompanying notes are an integral part of the Coldated Financial Sements THE KROKER CO CONSOLIDATED STATEMENTS OF CASH FLOWS MacBook Pro * G Search or type URL + esc & 7 0 9 # 8 $ 4 @ 5 6 2 THE KROGER CO. CONSOLIDATED STATEMENTS OF CASH FLOWS (unasdited) Al 10 UPO Defne Store El segon sellaisiais il lol lol lol Pariptalgiatamilultial ciesligainalla MacBook Pro R G Search or type URL + esc ( 9 F & 0 # % 5 $ 4 00 7 8 6 Menu Sections Search Facts 0 Q Data Tags Y More Filters Inline XBRL viewing features are minimal because no supporting file was found. Facts 750 Jaane | Polymerer im la de la ballo alla + where The other MacBook Pro G Search or type URL esc & C 9 $ # % 5 @ 0 6 7 8 THE KROGER CO. CONSOLIDATED STATEMENTS OF CHANGES IN SILAREOWNERS' EQUITY (dited) Ce Stock Shares LS O Comprehe Am C 11 Tales Fey2.2019 of come seck Steckties en Restricted Treasury och vi Stock options exchanged Shebed employee com Other comprennent of income tax af (35) Cumulate after at some change Oder Cash dividende declared (56.14 porcom Neturnips including controlling in al 13 11 11 IL 16 15 Races w May 25, 2019 Stuck options and ... la lag. 1151 119 31 Treasury okay Stackich Share and employee Cherche of income of Other Cash dividends declared Som Nel caring including controlling in TE HII 31 1 - ei @4 Tryckthy Stepinchanged Share-based employee comment Other MacBook Pro S G Search or type URL esc = & % 0 8 9 THE KROGER CO. CONSOLIDATED STATEMENTS OF CHANGES IN SILAREOWNERS' EQUITY (dited) Ce Stock Shares LS O Comprehe Am C 11 Tales Fey2.2019 of come seck Steckties en Restricted Treasury och vi Stock options exchanged Shebed employee com Other comprennent of income tax af (35) Cumulate after at some change Oder Cash dividende declared (56.14 porcom Neturnips including controlling in al 13 11 11 IL 16 15 Races w May 25, 2019 Stuck options and ... la lag. 1151 119 31 Treasury okay Stackich Share and employee Cherche of income of Other Cash dividends declared Som Nel caring including controlling in TE HII 31 1 - ei @4 Tryckthy Stepinchanged Share-based employee comment Other MacBook Pro S G Search or type URL esc = & % 0 8 9 Sections 0 Search Facts a Data Othe Tags More Filters Nearing including rings Facts Baluces May 25, 2019 1 LISTS 3 Treasury Hocktivity: Stock options changed Share-based employee compensation Other comprehensive to me of income to Other Cash dividende declared (0.16 per como here) Nel camins including controlling interests TIT FEEL TI @ @ LII 1 Balance August 17, 2019 KITS KE 121 ( El 1 Stack options Restricted stocked Treasury work activity Stock pic changed Share based employee compensation Other comprehensive income of income tax f514 Othe Cash dividends declared (566 perc) Niet earnings including ingress Juclused algave om IELG.. la lut. LILI 11 TIL- LI Balla 1,116 TITLE 1180 II I Balances at November 9, 2019 Isance of cock Stock options esercised Rested issued Treasury sock achty Treasury suck purchase Stack opties exchanged Share based employee competi Our comprehensive income nel of income of Other Decemalidation of Locks Market Caddede declared (56.16 p.) Net earnings including rings !! IIIIII 11 IIIIII 34 1 1 111 Balance at February 1, 2000 MacBook Pro en Facts Q Data Tags T More Filters Facts THE KROGER CO CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY (uralia) dal Shares Capital Law 5 141 Balance Towy 1.2000 Lance of cock: Stock opens een Rewrite ockband Trwy Mock sctivity Trenry Mock pucha, Stock is changed Share based employee com Our comprehensive loweet of income tax of $) Other Cash dividende declared (50.16 per common share) Netcarnings including controlling interest TULUI 11 III 1 GB euil 13 Balances May 21, 2000 eel 10ml - gler Stocopied Restock and DI BIG@ Treasury sack purchase Stock opties enchanged Share-based employee competi Other comprehensive income stafincome tax as Oher Cash dividends declared to share Netting including rolling Balance AS, 2000 The accompanying notes are an integral part of the Consolidated Financial Statements. MacBook Pro G Search or type URL supporting tile was found. Item 1. Financial Statements. THE KROGER CO. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (is millions, encepl per share am Sales Angaat 15 , A 17, 2013 28,168 Ap 11, $ 30.489 $ $ 72,033 $ 65,419 Operating expenses Merchandise costs, including advertising, warehousing, and transportation, excluding items shesin separately below Operating, general and administrative Rent Depreciation and amortization 22.007 23,551 5,297 204 617 55.00 12.90 50,990 11,125 200 591 1,370 820 559 2,146 1,460 Operating profit Other income (expense) Interest expense Non-service component of company-sponsored pension plan costs Gain (loss) on investments Gain on sale of businesses (135) (3091 (130) (4) (45) 19 790 368 (1) 61 176 Net camnings before income tax expense 1,061 180 2646 1.169 Income tax expense 241 93 319 820 2,032 1,050 Net earnings including noncontrolling interests Net income (loss) attributable to noncontrolling interests 287 (10) 1 S 819 5 2,031 $ 1.09 Net earnings attributable to The Kroger Co. 1.04 $ 0.37 Net earnings attributable to The Kroger Co. per basic common share MacBook Pro Soarch or tyne URL ! Apes Menu Sections 0 Search Facts D Data Tags More Filters Facts Inline XBRL Viewing features are minimal because no supporting file was found. Interest expense Non-service component of company sponsored pension plan costs Gain (less) on investments Gain on sale of businesses (135) (4) 19 (1) 61 176 Net earnings before income tax expense 1061 30 1,300 Income tax expense 341 91 14 1,050 138 13 181 18 31919 BRIE 15 15 11 15 181 | ||||||||| IEI IS 319 197 Net carmings including noncontrolling interests Net income (los) atributable to noncontrolling interests Net camnings attributable to The Kooper Ca Net camnings tributable to The Kroger Co. per basic common share Average number of common shares used in basic calculation Net earnings attributable to The Kroger Co. per diluted common share Average number of common shares used in diluted calculation The accompanying notes are an integral part of the Comelduned Financial Statements 5 2,031 1,059 717 779 101 2255 1.31 76 THE KROGER CO. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Latt 30 MacBook Pro urch or tyne URL THE KROGER CO. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (a millions) Net earnings including noncontrolling interests Se Quared Aguis, Aug 11 10 3019 820 $ 287 Tesatud A 1 August 11 319 2,032 $ 1.050 Other comprehensive income (loss) Change in pension and other postretirement defined benefit plans, net of income tax!!) Unrealized gains and losses on cash flow hedging activities, net of income tax) Amortization of unrealized gains and losses on cash flow hedging activities, net of income tax) Cumulative effect of accounting change 16 (55) lor (63) (146) Total other comprehensive income (loss) (453 (191) 899 (19) 2020 Comprehensive income 827 242 2,021 Comprehensive income (loss) attributable to non controlling interests (10) Comprehensive income attributable to The Kroger Co. 826 252 s (1) Amount is net of tax of S1 for the second quarter of 2020 and $2 for the second quarter of 2019. Amount is net of tax of S) for the first two quarters of 2020 and 55 for the first two quarters of 2019. (2) Amount is net of tax of 1 for the second quarter of 2020 and ($17) for the second quarter of 2019. Amount is net of tax of (510) for the first two quarters of 2020 and (526) for the first two quarters of 2019. (3) Amount is net of tax of si for the second quarter of 2019. Amount is net of tax of S for the first two quarters of 2020 and s for the first two quarters of 2019. (4) Related to the adoption of Accounting Sundards Update ("ASU) 2018-02, "Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain that forets from Accumulated Other Comprehensive Income." The accompanying notes are an integral part of the Consolidated Financial Statements. MacBook Pro XBRL viewing features are minimal because no supporting file was found. THE KROGER CO. CONSOLIDATED BALANCE SHEETS (und All wy 10 LIN 1:53 1. (I wil, el per ASSETS Current Cash and temporary cashme Store deposits in-transit Receivables FIFO investory LIFO reserve Prepaid and other current Total current IL (144 315 12.16 100 111 10 5514 10 Property, plant and get UN 19 God Others 41.50 45 Total As 5 LIABILITIES Currentes Custom-com det including in de finances 3 136 4 14 105 Accrued alles and we Other cables Total Lengtum debet including ligations under finance Defned income Pension and power Other lang MacBook Pro G Search or type URL . esc ( 9 & 7 0 # $ % 5 8 @ 6 3 4 Facts 70 e XBRL viewing features are minimal because no supporting file was found. Deferred mene Pension and portretirement benefit obligations Other long-term liabilities 1 S Total Liabilities Commitments and contingencies se Note? SHAREHOLDERS' EQUITY Preferred shares, 5100 per person, there withorised andmed Common shares, si per pershan,2,000 shares who 1.91 sharesised in 2000 w 2019 Additional paid-in capital Accumuled her comprehensive los Accumulated earnings Common shares in treasury, al cos, 1.123hares in 2000 1,130 hares i 2019 19 19 132 51 17.57 116 Total Shoes' Equity - The Koper Co. Nincelling interest Total Equity Tocal Litend quity The accompanying notes are an integral part of the Coldated Financial Sements THE KROKER CO CONSOLIDATED STATEMENTS OF CASH FLOWS MacBook Pro * G Search or type URL + esc & 7 0 9 # 8 $ 4 @ 5 6 2 THE KROGER CO. CONSOLIDATED STATEMENTS OF CASH FLOWS (unasdited) Al 10 UPO Defne Store El segon sellaisiais il lol lol lol Pariptalgiatamilultial ciesligainalla MacBook Pro R G Search or type URL + esc ( 9 F & 0 # % 5 $ 4 00 7 8 6 Menu Sections Search Facts 0 Q Data Tags Y More Filters Inline XBRL viewing features are minimal because no supporting file was found. Facts 750 Jaane | Polymerer im la de la ballo alla + where The other MacBook Pro G Search or type URL esc & C 9 $ # % 5 @ 0 6 7 8 THE KROGER CO. CONSOLIDATED STATEMENTS OF CHANGES IN SILAREOWNERS' EQUITY (dited) Ce Stock Shares LS O Comprehe Am C 11 Tales Fey2.2019 of come seck Steckties en Restricted Treasury och vi Stock options exchanged Shebed employee com Other comprennent of income tax af (35) Cumulate after at some change Oder Cash dividende declared (56.14 porcom Neturnips including controlling in al 13 11 11 IL 16 15 Races w May 25, 2019 Stuck options and ... la lag. 1151 119 31 Treasury okay Stackich Share and employee Cherche of income of Other Cash dividends declared Som Nel caring including controlling in TE HII 31 1 - ei @4 Tryckthy Stepinchanged Share-based employee comment Other MacBook Pro S G Search or type URL esc = & % 0 8 9 THE KROGER CO. CONSOLIDATED STATEMENTS OF CHANGES IN SILAREOWNERS' EQUITY (dited) Ce Stock Shares LS O Comprehe Am C 11 Tales Fey2.2019 of come seck Steckties en Restricted Treasury och vi Stock options exchanged Shebed employee com Other comprennent of income tax af (35) Cumulate after at some change Oder Cash dividende declared (56.14 porcom Neturnips including controlling in al 13 11 11 IL 16 15 Races w May 25, 2019 Stuck options and ... la lag. 1151 119 31 Treasury okay Stackich Share and employee Cherche of income of Other Cash dividends declared Som Nel caring including controlling in TE HII 31 1 - ei @4 Tryckthy Stepinchanged Share-based employee comment Other MacBook Pro S G Search or type URL esc = & % 0 8 9 Sections 0 Search Facts a Data Othe Tags More Filters Nearing including rings Facts Baluces May 25, 2019 1 LISTS 3 Treasury Hocktivity: Stock options changed Share-based employee compensation Other comprehensive to me of income to Other Cash dividende declared (0.16 per como here) Nel camins including controlling interests TIT FEEL TI @ @ LII 1 Balance August 17, 2019 KITS KE 121 ( El 1 Stack options Restricted stocked Treasury work activity Stock pic changed Share based employee compensation Other comprehensive income of income tax f514 Othe Cash dividends declared (566 perc) Niet earnings including ingress Juclused algave om IELG.. la lut. LILI 11 TIL- LI Balla 1,116 TITLE 1180 II I Balances at November 9, 2019 Isance of cock Stock options esercised Rested issued Treasury sock achty Treasury suck purchase Stack opties exchanged Share based employee competi Our comprehensive income nel of income of Other Decemalidation of Locks Market Caddede declared (56.16 p.) Net earnings including rings !! IIIIII 11 IIIIII 34 1 1 111 Balance at February 1, 2000 MacBook Pro en Facts Q Data Tags T More Filters Facts THE KROGER CO CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY (uralia) dal Shares Capital Law 5 141 Balance Towy 1.2000 Lance of cock: Stock opens een Rewrite ockband Trwy Mock sctivity Trenry Mock pucha, Stock is changed Share based employee com Our comprehensive loweet of income tax of $) Other Cash dividende declared (50.16 per common share) Netcarnings including controlling interest TULUI 11 III 1 GB euil 13 Balances May 21, 2000 eel 10ml - gler Stocopied Restock and DI BIG@ Treasury sack purchase Stock opties enchanged Share-based employee competi Other comprehensive income stafincome tax as Oher Cash dividends declared to share Netting including rolling Balance AS, 2000 The accompanying notes are an integral part of the Consolidated Financial Statements. MacBook Pro G Search or type URL