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 10K 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 perunit inventory cost rates at the two companies? (%, 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)[2] 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 ($) 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 ($)