Chapter 7 HMWK eBook Show Me How Inventory Turnover and days' sales in inventory 3. TMM.07.03 Kracker Corp., Foodstuff, Inc., and Winston Stores, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory (in millions) information: 4. TMM.07.04 Kracker Foodstuff Winston 5. TMM.07.05 Corp. Inc. Stores 6. TMM.07.07 $34,310.0 $33,945.0 $35,770.0 Cost of merchandise sold Inventory, beginning of year Inventory, end of year 1,993.7 2,086.9 7. PE.07.01.ALGO 1,514.1 1,425.9 1,954.3 2,005.1 8. PE.07.02.ALGO a. & b. Determine the inventory turnover and the number of days' sales in inventory (use 365 days and round to the nearest day) for the three companies Round all interim calculations to one decimal place. For days' sales in inventory, round final answers to the nearest day, and for inventory turnover, round to one decimal place. 9. PE.07.03.ALGO Company names Inventory Turnover Days' Sales in Inventory 10. PE.07.05.ALGO Kracker days 11. PE.07.08A Foodstuff days 12. PE.07.08B Winston Stores days 13. EX.07.12.ALGO inventory c. The inventory turnover ratios and days' sales in inventory are similar for Kracker and Foodstuff. ston Stores has a higher turnover and a lower days' sales in inventory than Kracker and Foodstuff. These results suggest that Kracker and Foodstuff are less Winston Stores in managing inventory. efficient th: 14. EX.07.13.ALGO 15. EX.07.20.ALGO d. If Kracker had Winston Stores' days' sales in inventory, how much additional cash flow would have been generated from the smaller inventory relative to its actual average inventory position? Round interim calculations to one decimal place and your final answer to the nearest million. million 16. EX.07.21.ALGO 17. PR.07.04A Check My Work Previous Next Progress: 16/17 items