The following information (in $ millions) was taken from the annual reports of two companies.

Required
a. Calculate each company's inventory turnover and average days to sell inventory.
b. The two companies are Safeway, Inc., a food and drug retailer, and Caterpillar, Inc., a manufacturer of heavy construction equipment. Which of these two companies is Company A? Which is Company B? How did you arrive at each company'sidentity?

Transcribed Image Text:

Company A Cost of goods sold Average inventory $27,303.1 $ 2,758.1 Company B S26,558.0 $ 4,949.5