Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Inventory Turnover and days sales in inventory Kracker Corp., Foodstuff, Inc., and Winston Stores, Inc. are three grocery chains in the United States. Inventory management
Inventory Turnover and days" sales in inventory 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: Cost of merchandise sold Inventory, beginning of year Inventory, end of year Kracker Corp. Foodstuff Inc. Winston Stores $33,580.0 1,951.3 1,912.7 $34,675.0 2,131.8 2,048.2 $35,040.0 1,483.2 1,396.8 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. Company names Kracker Foodstuff Inventory Turnever Days' Sales in Inventory days days Winston Stores c. The inventory turnover ratios and days sales in inventory are C for Kracker and Foodstuff. Winston Stores has a days sales in inventory than Kracker and Foodstuff. These results suggest that Kracker and Foodstuff are inventory turnover and a efficient than Winston Stores in managing Inventory d. If Kracker hail 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started