Calculating Gross Profit Margin and Inventory Turnover The following table presents sales revenue, cost of goods sold, and inventory amounts for three retailers of fine jewelry, Tiffany & Co., Zale Corporation, and Blue Nile, Inc. (an Internet retailer). 2013 2012 $4,131 $3,879 1,741 1,666 2,427 2,334 ($ millions) Tiffany & Co. Revenues Cost of goods sold Inventory Zale Corporation Revenues Cost of goods sold Inventory Blue Nile, Inc. Revenues Cost of goods sold Inventory $1,938 $1,902 954 793 757 941 $475 $435 416 360 60 48 a. Compute the gross profit margin (GPM) for each of these companies for 2013 and 2012. Note: Round GPM answers to one decimal place (ex: 0.2345 = 23.5%). Tiffany Zale Blue Nile 2013 2012 2013 2012 2013 2012 $ $ 2,213 $ 984 $ 961 $ 59 $ 75 Gross profit Gross profit margin (GPM) 2,390 57.9 % 57.1 % 50.8 % 50.5 % 12.4 % 17.2 % C $435 Blue Nile, Inc. Revenues Cost of goods sold Inventory $475 416 360 60 48 a. Compute the gross profit margin (GPM) for each of these companies for 2013 and 2012. Note: Round GPM answers to one decimal place (ex: 0.2345 = 23.5%). Tiffany Zale 2013 2012 2013 2012 2,390 Gross profit 2,213 984 961 Gross profit margin (GPM) 57.9 % 57.1 % 50.8 % 50.5 % Blue Nile 2013 2012 $ $ $ $ $ 59 $ 75 12.4 % 17.2 % b. Compute the inventory turnover ratio and the average inventory days outstanding for 2013 for each company. Do not round until your final answer. Round inventory turnover to one decimal place. Round average inventory days outstanding to nearest whole number. Tiffany Zale Blue Nile Inventory turnover 0.7 1.2 7.7 Avg. inventory days outstanding 514 x 47 300 X Check