Inventory Turnover and Number of Days' Sales in Inventory

Kracker, Foodstuff Inc., and Winston Stores Inc. are three large grocery chains. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory information:

	Merchandise Inventory
	End of Year (in millions)	Beginning of Year (in millions)
Kracker	$5,948	$5,472
Foodstuff	4,970	3,976
Winston	3,766	3,992

The cost of goods sold for each company was:

	Cost of Goods Sold (in millions)
Kracker	$83,272
Foodstuff	39,760
Winston	45,192

a. Determine the number of days' sales in inventory for each of the three companies. Assume 365 days a year. Round all interim calculations to one decimal place. For number of days' sales in inventory, round final answers to the nearest day, and for inventory turnover, round to one decimal place.

Company names	Number of Days' Sales in Inventory	Inventory Turnover
Kracker	? days ___	? ___
Foodstuff	? days ___	?___
Winston	? days ___	?___

b. If Winston had Kracker's number of 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