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need help On the questionable B through F We are comparing The Home Depot, Inc. and Lowe's Companies, Inc., the two giant retailers in home

image text in transcribedneed help On the questionable B through F

We are comparing The Home Depot, Inc. and Lowe's Companies, Inc., the two giant retailers in home & construction products and services, regarding their inventory turns and inventory costs. (a)[2] You need to find official corporate data for 2016 to fill in the first part of the table below. Specifically, you need to locate annual reports and 10-K fillings for 2016 on - The Home Depot, Inc.: http://corporate.homedepot.com/ Lowe's Companies, Inc.: http://www.lowes.com/and find "Investor Relations" Assume that the average annual inventory holding cost rate is 28% for both companies; price and inventory turns are independent, and there are 365 days of operations in a year. Note that Gross profit = Net sales-COGS; and Gross profit margin = Gross profit/Net Sales. For the following parts, show equations and calculations, and complete the table (b)[2] What is the average number of days that a product typically stays in the two companies' inventories until sold (inventory duration)? (2 decimals) (c)[1] What are the inventory turns a year at these two retailers? (2 decimals) (d)[1] what are the per-unit inventory cost rates at the two companies? (96, 2 decimals) (e)[2] Regarding equivalent cordless drills with the same unit cost of $160, which retailer has the lower inventory holding cost and by how much? (Dollar amounts) (F)12] Find the average gross profit on an inventory merchandise investment of $160. Then, find the immediate gross profit (gross profit minus inventory holding cost). Which company has the higher immediate gross profit? Net sales (millions of $) $94,595.00 $65,017.00 Gross profit (millions of $) 62,282 32,313 22,464 42553 Cost of goods sold (COGS, millions of $) Merchandise Inventory (millions of $) Gross profit margin (GMP, % 2decimals) Annual inventory cost rate (% 2 decimals) Part 2 - Inventory Turns Inventory duration (days, 2 decimals) Inventory turns (turns per year, 2 12,549 34.15% 28.00% 10,458 65.44% 28.00% Home Depot Lowe's 2.57% 4.06% 142.02 89.90% decimals) Part 3 - Inventory Costs A cordless drill ($) Per-unit inventory holding cost rate (%, 2 Home Depot Lowe's $160.00 $160.00 decimals) Inventory holding cost Inventory holding cost difference (Lowes- HomeDepot, $) Gross profit ($) Immediate gross profit (S) We are comparing The Home Depot, Inc. and Lowe's Companies, Inc., the two giant retailers in home & construction products and services, regarding their inventory turns and inventory costs. (a)[2] You need to find official corporate data for 2016 to fill in the first part of the table below. Specifically, you need to locate annual reports and 10-K fillings for 2016 on - The Home Depot, Inc.: http://corporate.homedepot.com/ Lowe's Companies, Inc.: http://www.lowes.com/and find "Investor Relations" Assume that the average annual inventory holding cost rate is 28% for both companies; price and inventory turns are independent, and there are 365 days of operations in a year. Note that Gross profit = Net sales-COGS; and Gross profit margin = Gross profit/Net Sales. For the following parts, show equations and calculations, and complete the table (b)[2] What is the average number of days that a product typically stays in the two companies' inventories until sold (inventory duration)? (2 decimals) (c)[1] What are the inventory turns a year at these two retailers? (2 decimals) (d)[1] what are the per-unit inventory cost rates at the two companies? (96, 2 decimals) (e)[2] Regarding equivalent cordless drills with the same unit cost of $160, which retailer has the lower inventory holding cost and by how much? (Dollar amounts) (F)12] Find the average gross profit on an inventory merchandise investment of $160. Then, find the immediate gross profit (gross profit minus inventory holding cost). Which company has the higher immediate gross profit? Net sales (millions of $) $94,595.00 $65,017.00 Gross profit (millions of $) 62,282 32,313 22,464 42553 Cost of goods sold (COGS, millions of $) Merchandise Inventory (millions of $) Gross profit margin (GMP, % 2decimals) Annual inventory cost rate (% 2 decimals) Part 2 - Inventory Turns Inventory duration (days, 2 decimals) Inventory turns (turns per year, 2 12,549 34.15% 28.00% 10,458 65.44% 28.00% Home Depot Lowe's 2.57% 4.06% 142.02 89.90% decimals) Part 3 - Inventory Costs A cordless drill ($) Per-unit inventory holding cost rate (%, 2 Home Depot Lowe's $160.00 $160.00 decimals) Inventory holding cost Inventory holding cost difference (Lowes- HomeDepot, $) Gross profit ($) Immediate gross profit (S)

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