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1a) What is the company's operating cycle and what is its cash cycle? 1b) If the company could reduce its days in inventory by 20

1a) What is the company's operating cycle and what is its cash cycle?

1b) If the company could reduce its days in inventory by 20 days in 2017 what would be the change to your forecast of the 2017 free cash flow?

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Consolidated Statements of Earnings USD shares in Millions, in Millions Net Revenues: Total net revenues Cost of sales including occupancy costs Store operating expenses other operating expenses Depreciation and amortization expenses General and administrative expenses Litigation credit Total operating expenses Operating income Gain resulting from acquisition of joint venture Loss on extinguishment of debt Interest income and other, net Interest expense Earnings before income taxes Income tax expense Net earnings 12 Months Ended Oct. 02, 2016 Sep. 27, 2015 Sep. 28, 2014 100.00% 100.00% 100.00% 40.64% 39.93% 41.70% 28.45% 28.24% 28.20% 2.56% 2.73% 2.78% 4.60% 4.66% 4.31% 4.89% 4.94% 4.40% 0.00% 0.00% -0.12% 80.43% 81.21% 81.27% 18.79% 19.57% 18.73% 0.00% 2.04% 0.00% 0.00% -0.32% 0.00% 0.51% 0.22% 0.87% -0.38% -0.37% -0.39% 19.70% 20.37% 19.21% 5.97% 6.64% 6.47% 14.40% 12.57% 13.22%

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