Analyzing Inventory for Two Retail Grocery CompaniesCarrefour Group (headquartered in Boulogne-Billancourt, France) and Tesco PLC (headquartered in Welwyn Garden City, UK) compete head-to-head in the grocery spacein the UK, Ireland, Central Europe, and North Africa. The following information comes from their 2018 annual reports.SalesCarrefour Group inTesco PLC in€ millions20172018€ 79,040 € 81,448 £59,791 £58,154£ millions20182017Cost of sales60,85062,311 54,141 53,015Gross profit18,19019,137 5,650 5,139InventoryTotal assets6,38047,3786,958 2,354 2,39347,813 44,862 45,853Requireda. Calculate gross profit margin for each year for both companies.Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).Carrefour GroupTesco PLC2018Gross profit margin (%)23.3% x201723.3% x201820177.5% x7.1 % xb. Determine the common-size inventory for each year for both companies.Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).Carrefour Group2018Common-size inventory13.3% xTesco PLC20172018201712.4% x4.4% x4.7% x

Detailed explanation:a.Formula : Gross Profit Margin = gross profit/sales Carrefour Group Tesco Plc…

Answered: Analyzing Inventory for Two Retail…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 1MAD: Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Target Corporation...

See similar textbooks

Similar questions

CASE NO#2- INVENTORY VALUATION METHODS TESCO is a British multinational groceries and general merchandise retailer with headquarters in Welwyn Garden City, Hertfordshire, England, United Kingdom. It is the third-largest retailer in the world measured by gross revenues. It has shops in seven countries across Asia and Europe. It is the market leader of groceries in the UK, Ireland, Hungary, and Thailand. It provides the following purchases and sales of Merchandise Inventory for the month of June 2020: Date Details Units Unit Price OMR June 2 Purchases 12,000 12,000 6,800 24,000 25,000 600 20 June 5 Purchases 400 30 June 9 Purchases 200 34 June 15 Purchases 600 40 June 22 Purchases 1,000 25 Total Purchases 2,800 79,800 Date Details Units Unit Price OMR June 7 Sales 36,000 40,000 9,000 85,000 600 60 June 17 Sales 500 80 June 25 Sales 200 45 Total Sales Company follows Perpetual Inventory System. All purchases and sales are on credit basis. 1,300 You are requíired to: a) Compute the cost of…
Cost of goods sold Average inventory 2020 2021 2022 $923,550 $980,640 126,290 Inventory Turnover 7.3 2021 6.3 5.3 156,510 2022 (a) Do a trend analysis of the inventory turnover for each year. Also calculate the days to sell invento (Round inventory turnover to 2 decimal places, e.g. 18.42 and number of days to 1 decimal place, e.g. 13.6., $1,149,910 $1,329,510 208,410 Number of Days 2023 321,820 days days days 2024 $1,408,530 451,860
Perform the vertical Financial Statement Analysis of Income Statement
Using Inventory Analysis Tools AutoZone and O'Reilly are two competitors in the retail automotive parts industry. AutoZone O'Reilly Average 2015 Inventory $3,290,867 $2,602,901 2015 Sales 10,265,117 8,044,451 2015 Cost of goods sold 4,860,309 3,804,031 Average 2014 Inventory $3,010,556 $2,474,917 2014 Sales 9,553,090 7,293,858 2014 Cost of goods sold 4,540,406 3,507,180 Use the information above to compute the companies' gross profit margin and days inventory outstanding for both years. Round answers to one decimal place (ex: 0.2345 = 23.5%). Gross Profit Margin AutoZone O'Reilly 2015 2014 Round to answers to one decimal place. Days Inventory Outstanding O'Reilly AutoZone 2015 2014
Inventory Turnover and days' sales in inventory Kracker Corp., Foodstuff, Inc., and Winston Stores, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory (in millions) information: Kracker Foodstuff Winston Corp. Inc. Stores Cost of merchandise sold $33,580.0 $34,675.0 $35,040.0 Inventory, beginning of 1,951.3 2,131.8 1,582.1 year Inventory, end of year 1,912.7 2,048.2 1,489.9 a. & b. Determine the inventory turnover and the number of days' sales in inventory (use 365 days and round to the nearest day) for the three companies. Round all interim calculations to one decimal place. For days' sales in inventory, round final answers to the nearest day, and for inventory turnover, round to one decimal place. Company names Inventory Turnover Days' Sales in Inventory Kracker days Foodstuff days Winston Stores days c. The…
Inventory Turnover and days' sales in inventory Kracker Corp., Foodstuff, Inc., and Winston Stores, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory (in millions) information: Kracker Foodstuff Winston Corp. Inc. Stores Cost of merchandise sold $33,580.0 $34,675.0 $35,040.0 Inventory, beginning of 1,951.3 2,131.8 1,582.1 year Inventory, end of year 1,912.7 2,048.2 1,489.9 a. & b. Determine the inventory turnover and the number of days' sales in inventory (use 365 days and round to the nearest day) for the three companies. Round all interim calculations to one decimal place. For days' sales in inventory, round final answers to the nearest day, and for inventory turnover, round to one decimal place. Company names Inventory Turnover Days' Sales in Inventory Kracker 17.38 X 21.00 v days Foodstuff 16.59 X 22.00 v days…
Hah
Inventory Turnover and days’ sales in inventory Kroger, Sprouts Farmers Market, Inc., and Ingles Markets, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory (in millions) information: Kroger Sprouts Ingles Cost of merchandise sold $94,894 $3,460 $3,113 Inventory, end of year 8,123 264 372 Inventory, beginning of year 7,781 230 349 a. & b. Determine the inventory turnover and the number of days’ sales in inventory (use 365 days) for the three companies. Round all interim calculations to one decimal place. For days' sales in inventory, round final answers to one decimal place, and for inventory turnover, round to two decimal places. Company names Inventory Turnover Days' Sales in Inventory Kroger fill in the blank 1 fill in the blank 2 days Sprouts fill in the blank 3 fill in the blank 4 days…
vs
Using Inventory Analysis ToolsAutoZone and O'Reilly are two competitors in the retail automotive parts industry. AutoZone O'Reilly Average 2015 Inventory $3,330,863 $2,642,897 2015 Sales 10,587,339 8,366,673 2015 Cost of goods sold 4,860,309 3,804,031 Average 2014 Inventory $3,050,552 $2,514,913 2014 Sales 9,875,312 7,616,080 2014 Cost of goods sold 4,540,406 3,507,180 Use the information above to compute the companies' gross profit margin and days inventory outstanding for both years.Round answers to one decimal place (ex: 0.2345 = 23.5%). Gross Profit Margin AutoZone O'Reilly 2015 Answer Answer 2014 Answer Answer Round to answers to one decimal place. Days Inventory Outstanding AutoZone O'Reilly 2015 Answer Answer 2014 Answer Answer
Inventory Turnover and days' sales in inventory Kroger, Sprouts Farmers Market, Inc., and Whole Foods Markets, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory (in millions) information: Kroger Sprouts Whole Foods 誰 Cost of merchandise sold $85,512 $2,541 $9,973 Inventory, end of year 5,688 165 500 Inventory, beginning of year 5,651 143 441 a. & b. Determine the inventory turnover and the number of days' sales in inventory (use 365 days and round to one decimal place) for the three companies. Round all interim calculations to one decimal place. For days' sales in inventory, round final answers to the nearest day, and for inventory turnover, round to two decimal places.
Inventory Turnover and days' sales in inventory Kracker Corp., Foodstuff, Inc., and Winston Stores, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory (in millions) information: Cost of merchandise sold Inventory, beginning of year Inventory, end of year Kracker Foodstuff Kracker Corp. $33,580.0 1,951.3 1,912.7 Winston Stores a. & b. Determine the inventory turnover and the number of days' sales in inventory (use 365 days and round to the nearest day) for the three companies. Round all interim calculations to one decimal place. For days' sales in inventory, round final ers to the nearest day, and for inventory turnover, round to one decimal place. Company names Inventory Turnover TE 16.6 22.8 ✔ Foodstuff Inc. 17.4 $33,215.0 2,042.0 1,962.0 Winston Stores $35,405.0 1,598.6 1,505.4 Days' Sales in Inventory 21 ✔ days…

SEE MORE QUESTIONS

Recommended textbooks for you

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Financial Accounting: The Impact on Decision Make…

Accounting

ISBN:

9781305654174

Author:

Gary A. Porter, Curtis L. Norton

Publisher:

Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

SEE MORE TEXTBOOKS