Calculate RONAs inventory turnover ratio and the number of days inventory on hand for 2008 and 2007.

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Calculate RONA’s inventory turnover ratio and the number of days inventory on hand for 2008 and 2007. (The amount of inventory sold in 2008 and 2007 isn’t in the income statement—you have to look in the notes for it). Assume RONA’s inventory at the end of fiscal 2006 was $790,496,000. Evaluate the change in turnover over the two-year period.

RONA Inc. (RONA) is the largest distributor and retailer of hardware, home renovation, and gardening products in Canada. It operates a network of over 680 corporate, franchise, and affiliate stores of various sizes and formats. With over 27,000 RONA employees across Canada, the store network generates over $6.3 billion in annual retail sales. RONA’s mission is to offer the best service and the right product at the right price to North American consumers of housing and home improvement products. RONA is listed on the TSX under the symbol RON.’
RONA’s consolidated balance sheets and statements of earnings and cash flows, along with extracts from the notes to the financial statements and extracts from management’s discussion and analysis, are provided in Exhibit 7.3.

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