The table below contains selected financial information included in the 2009 financial statements of Saks, Inc., and

Question:

The table below contains selected financial information included in the 2009 of Saks, Inc., and Dillards, Inc., two companies in the department store industry.

Required:
1. Calculate the 2009 gross profit ratio, , and average days in inventory for both companies. Evaluate the management of each company's investment in inventory. Industry averages for these ratios are as follows:
Gross Profit ........ 25%
Inventory ......... 2.73
Average days in inventory .. 134

2. Obtain annual reports from three corporations in an industry other than autos and compare the management of each company's investment in inventory.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... 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...