Analyzing Inventory for Two Retail Grocery Companies Carrefour Group (headquartered in Boulogne-Billancourt, France) and Tesco PLC (headquartered in Welwyn Garden City, UK) compete head-to-head in the grocery space in the UK, Ireland, Central Europe, and North Africa. The following information comes from their 2018 annual reports. Carrefour Group in Tesco PLC in C millions £ millions 2017 2018 2017 €82.231 E60.366 E58.713 €79.800 60.850 62.311 54,141 53,015 19.920 6.225 5,698 7,025 2.376 2,416 47.813 44.862 45.853 Required 2018 Sales Cost of sales Gross profit 18.950 Inventory 6,442 Total assets 47.378 a. 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 Group 2018 Tesco PLC 2017 2017 Gross profit margin (M) Common-size inventory 96 % b. 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 Group 2018 Tesco PLC 2017 2017 Inventory turnover Average inventory days 2018 c. Compute inventory turnover and days average inventory outstanding for 2018. Note: Do not round until your final answer; round your final answer to one decimal place (for example, enter 6.8 for 6.77555). Carrefour Group Tesco PLC times days 2018 times days
Analyzing Inventory for Two Retail Grocery Companies Carrefour Group (headquartered in Boulogne-Billancourt, France) and Tesco PLC (headquartered in Welwyn Garden City, UK) compete head-to-head in the grocery space in the UK, Ireland, Central Europe, and North Africa. The following information comes from their 2018 annual reports. Carrefour Group in Tesco PLC in C millions £ millions 2017 2018 2017 €82.231 E60.366 E58.713 €79.800 60.850 62.311 54,141 53,015 19.920 6.225 5,698 7,025 2.376 2,416 47.813 44.862 45.853 Required 2018 Sales Cost of sales Gross profit 18.950 Inventory 6,442 Total assets 47.378 a. 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 Group 2018 Tesco PLC 2017 2017 Gross profit margin (M) Common-size inventory 96 % b. 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 Group 2018 Tesco PLC 2017 2017 Inventory turnover Average inventory days 2018 c. Compute inventory turnover and days average inventory outstanding for 2018. Note: Do not round until your final answer; round your final answer to one decimal place (for example, enter 6.8 for 6.77555). Carrefour Group Tesco PLC times days 2018 times days
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.12E: Inventory analysis Costco Wholesale Corporation (COST) and Wal-Mart Stores Inc. (WMT) compete...
Related questions
Topic Video
Question
Please do not give solution in image format thanku
Transcribed Image Text:Analyzing Inventory for Two Retail Grocery Companies
Carrefour Group (headquartered in Boulogne-Billancourt, France) and Tesco PLC (headquartered in Welwyn Garden City, UK) compete head-to-head in the grocery space in the UK, Ireland, Central Europe, and North Africa. The following information comes from
their 2018 annual reports.
Carrefour Group in
€ millions
2017
2018
€ 79,800
Sales
€ 82.231 £60.366 £58.713
Cost of sales
Gross profit
60.850 62.311 54,141 53,015
18,950 19,920 6,225 5,698
6,442
Inventory
7.025 2.376 2,416
Total assets. 47.378 47.813 44,862 45.853
Required
a. 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%).
Tesco PLC
Carrefour Group
2018
2017
Gross profit margin (96)
Tesco PLC in
E millions
2018 2017
Common-size inventory
96
Inventory turnover
Average inventory days
96
b. 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%).
Tesco PLC
Carrefour Group
2018
2017
96
2018
times
days
96
2018
2017
96
c. Compute inventory turnover and days average inventory outstanding for 2018.
Note: Do not round until your final answer; round your final answer to one decimal place (for example, enter 6.8 for 6.77555).
Carrefour Group
Tesco PLC
96
2017
times
days
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
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