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). ($ millions) Tiffany & Co. Year 2 Year 1 Revenues $4,364 $4,016 Cost of goods sold 1,777 1,673 Inventory 2,471 2,333 Zale Corporation Revenues Cost of goods sold Inventory Blue Nile, Inc. Revenues Cost of goods sold Inventory $1,974 $1,909 990 948 822 770 $504 $442 452 367 89 61 a. Compute the gross profit margin (GPM) for each of these companies for Year 2 and Year 1 Note: Round GPM answers to one decimal place (ex: 0.2345 = 23.5%) Tiffany Gross profit Gross profit margin (GPM) $ Year 2 Inventory turnover Avg. inventory days outstanding % $ Year 1 % Zale $ Year 2 Zale % $ Year 1 %6 Year 2 Blue Nile % $ Year 1 b. Compute the inventory turnover ratio and the average inventory days outstanding for Year 2 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. Blue Nile Tiffany %

- Compute the grous profit energin (GPV) for each of these compunies for vear 2 and Vear 1. b. Compute the inentery tumover ratio and the average inventory days oveusanding for Veat 2 for each company. Do nok round untilyout final