Question 1

Analyzing Inventory for Two Retail Grocery Companies Carrefour Group (headquartered in BoulogneBillancourt, France) and Tesco PLC (headquartered in Welwyn Garden City, UK) compete headtohead in the grocery space in the UK, Ireland, Central Europe, and North Africa. The following information comes from their 2018 annual reports.

	Carrefour Group in		Tesco PLC in
	millions		millions
	2018	2017	2018	2017
Sales	79,040	81,448	59,791	58,154
Cost of sales	60,850	62,311	54,141	53,015
Gross profit	18,190	19,137	5,650	5,139
Inventory	6,380	6,958	2,354	2,393
Total assets	47,378	47,813	44,862	45,853

Required a. Calculate gross profit margin for each year for both companies. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).

	Carrefour Group		Tesco PLC
	2018	2017	2018	2017
Gross profit margin (%)	Answer	Answer	Answer	Answer

b. Determine the commonsize inventory for each year for both companies. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).

	Carrefour Group		Tesco PLC
	2018	2017	2018	2017
Common-size inventory	Answer	Answer	Answer	Answer

c. Compute inventory turnover and days average inventory outstanding for 2018. Note: Do not round until your final answer; round your final answer to one decimal place (for example, enter 6.8 for 6.77555).

	Carrefour Group		Tesco PLC
Inventory turnover	Answer	times	Answer	times
Average inventory days	Answer	days	Answer	days