Financial Accounting (5th Edition)

chapter 6

Chapter 6 Inventory American Eagle Outfitter, Inc. vs The Buckle, Inc. R1. Which company carries a greater inventory balance as a percentage of total assets?

R2. Which company has a higher inventory turnover ratio and therefore lower average days in inventory?

R3. Which companys operations are more profitable using the gross profit ratio?

R4. Considering the companies ratio of operating expenses to net sales, does your answer to requirement 3 change? Explain.