The table below contains selected financial information included in the 2016 financial statements of Kohl's Corporation and

Question:

The table below contains selected financial information included in the 2016 of Kohl's and Dillards, Inc., two companies in the department store industry.

Required:
1. Calculate the 2016 gross profit ratio, inventory turnover ratio, and average days in inventory for both companies. Evaluate the management of each company's investment in inventory.
2. Obtain annual reports from three corporations in an industry other than department stores 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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...