Question
Real World Financials The table below contains selected information from recent financial statements of The Home Depot, Inc., and Lowes Companies, Inc., two companies in
Real World Financials The table below contains selected information from recent financial statements of The Home Depot, Inc., and Lowes Companies, Inc., two companies in the home improvement retail industry ($ in millions): Home Depot Lowe's 1/31/16 2/1/15 1/29/16 1/30/15 Net sales $ 81,602 $ 77,544 $ 56,207 $ 53,311 Cost of goods sold 54,212 49,542 25,665 33,824 Year-end inventory 13,430 13,050 9,397 8,870 Industry Averages: Gross profit ratio 33 % Inventory turnover ratio 3.9 times Average days in inventory 94 days Required: Calculate the gross profit ratio, the inventory turnover ratio, and the average days in inventory for the two companies for their fiscal years ending in 2016. (Use 365 days a year. Round "Inventory turnover ratio" to 2 decimal places. Enter dollar amounts in millions. Round the dollar answer values to the nearest whole dollars.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started