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Admiral Company and Corporal, Inc., compete against each other in general merchandise retailing tations, pharmacies, and optical centers. Below is selected financial information for both compani recent year's financial statements (in millions) Sales Cost of goods sold Inventory, beginning of period Admiral Company $30,660 25,550 791 Corporal, Inc. 791 $38,700 36,500 3,210 Inventory, end of period . Determine for both companies (1) the inventory turnover and (2) the days' sales in inventory. Ro 3,810

Admiral Company and Corporal, Inc., compete against each other in general merchandise retailing tations, pharmacies, and optical centers. Below is selected financial information for both compani recent year's financial statements (in millions) Sales Cost of goods sold Inventory, beginning of period Admiral Company $30,660 25,550 791 Corporal, Inc. 791 $38,700 36,500 3,210 Inventory, end of period . Determine for both companies (1) the inventory turnover and (2) the days' sales in inventory. Ro 3,810

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Admiral Company and Corporal, Inc., compete against each other in general merchandise retailing, gas stations, pharmacies, and optical centers. Below is selected financial information for both companies from a recent year's financial statements (in millions) Sales Cost of goods sold Inventory, beginning of period Inventory, end of period Admiral Company $30,660 25,550 791 791 Corporal, Inc. $38,700 36,500 Admiral fill in the blank 1 fill in the blank 3 3,210 3,810 a. Determine for both companies (1) the inventory turnover and (2) the days' sales in inventory. Round to one decimal place. Corporal fill in the blank 2 fill in the blank 4 1. Inventory turnover 2. Days' sales in inventory days b. All of the following are true of Admiral's strategy except: 1.This strategy results in a higher inventory turnover ratio than the strategy used by Corporal. 2. This strategy results in a smaller days' sales in inventory than the strategy used by Corporal. 3. This strategy embraces the ability to serve customers with newer technology than the Corporal strategy. 4. This strategy results in greater obsolescence risk than that used by Corporal. days
Transcribed Image Text:Admiral Company and Corporal, Inc., compete against each other in general merchandise retailing, gas stations, pharmacies, and optical centers. Below is selected financial information for both companies from a recent year's financial statements (in millions) Sales Cost of goods sold Inventory, beginning of period Inventory, end of period Admiral Company $30,660 25,550 791 791 Corporal, Inc. $38,700 36,500 Admiral fill in the blank 1 fill in the blank 3 3,210 3,810 a. Determine for both companies (1) the inventory turnover and (2) the days' sales in inventory. Round to one decimal place. Corporal fill in the blank 2 fill in the blank 4 1. Inventory turnover 2. Days' sales in inventory days b. All of the following are true of Admiral's strategy except: 1.This strategy results in a higher inventory turnover ratio than the strategy used by Corporal. 2. This strategy results in a smaller days' sales in inventory than the strategy used by Corporal. 3. This strategy embraces the ability to serve customers with newer technology than the Corporal strategy. 4. This strategy results in greater obsolescence risk than that used by Corporal. days
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