Question
Kroger, Sprouts Farmers Market, Inc., and Whole Foods Markets, Inc. are three grocery chains in the United States. Inventory management is an important aspect of
Kroger, Sprouts Farmers Market, Inc., and Whole Foods Markets, 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:
Kroger | Sprouts | Whole Foods | |
Cost of merchandise sold | $85,512 | $2,541 | $9,973 |
Inventory, end of year | 5,688 | 165 | 500 |
Inventory, beginning of year | 5,651 | 143 | 441 |
d. If Kroger had Whole Foods 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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