The following information is taken from the 2008 financial statements of La-Z-Boy, Inc., and the 2008 financial

Question:

The following information is taken from the 2008 of La-Z-Boy, Inc., and the 2008 of McDonald€™s.

The following information is taken from the 2008 financial state

1. Before you do any computations, forecast which of the two companies will have a lower number of days€™ sales in inventory.
2. Compute each company€™s number of days€™ sales in inventory. Was your forecast in (1) correct?
3. How can these two very successful companies have number of days€™ sales in inventory that are so different?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...