Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

M6-21. Using Inventory Analysis Tools AutoZone and O'Reilly are two competitors in the retail automotive parts industry. $ thousands AutoZone O'Reilly Average 2018 Inventory...

 

M6-21. Using Inventory Analysis Tools AutoZone and O'Reilly are two competitors in the retail automotive parts industry. $ thousands AutoZone O'Reilly Average 2018 Inventory... $ 3,912,878 $3,101,572 2018 Sales... 11,221,077 9,536,428 2018 Cost of goods sold.... 5,247,331 4,496,462 Average 2017 Inventory.... $ 3,757,001 $2,894,388 2017 Sales.... 2017 Cost of goods sold.... 10,888,676 5,149,056 8,977,726 4,257,043 a. Use the information above to compute the companies' gross profit margin and days inventory out- standing for both years. b. Based on these two ratios, which company is more profitable selling its inventory? How has that changed from 2017 to 2018? c. Based on these two ratios, which company is more efficient with its inventory? How has that changed from 2017 to 2018?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Management Theory And Practice

Authors: John A. Parnell

4th Edition

1452234981, 9781452234984

More Books

Students also viewed these Accounting questions

Question

What is the purpose of a Notice of Assessment?

Answered: 1 week ago