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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
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 Foodstuff Winston The cost of goods sold for each company was $4,208 4,500 5,438 $2,188 4,950 10,604 Kracker Foodstuff Winston Cost of Goods Sold (in millions) $58,912 54,000 76,132 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 Kracker Foodstuff Winston Number of Days' Sales in Inventory Inventory Turnover days days 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
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