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d. If Kracker had Winston Stores' days' sales in inventory, how much additional cash flow would have been generated from the smaller inventory relative to its actual average inventory position? Round interim calculations to one decimal place and your final answer to the nearest million. million

d. If Kracker had Winston Stores' days' sales in inventory, how much additional cash flow would have been generated from the smaller inventory relative to its actual average inventory position? Round interim calculations to one decimal place and your final answer to the nearest million. million

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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I need the answer for a & b and d, Please provide answer in text (Without image)
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 Corp. $33,580.0 1,951.3 1,912.7 Company names Kracker Foodstuff Inc. $35,405.0 1,598.6 1,505.4 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. Inventory Turnover $33,945.0 2,086.9 2,005.1 Days' Sales in Inventory 21 days Foodstuff 22 days 22.8 16 days Winston Stores for Kracker and Foodstuff. Winston Stores has a higher c. The inventory turnover ratios and days' sales in inventory are similar turnover and a lower days' sales in inventory than Kracker and Foodstuff. These results suggest that Kracker and Foodstuff are less than Winston Stores in managing inventory. 17.4 Winston Stores 16.6 inventory efficient d. If Kracker had Winston Stores' days' sales in inventory, how much additional cash flow would have been generated from the smaller inventory relative to its actual average inventory position? Round interim calculations to one decimal place and your final answer to the nearest million. million
Transcribed Image Text: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 Corp. $33,580.0 1,951.3 1,912.7 Company names Kracker Foodstuff Inc. $35,405.0 1,598.6 1,505.4 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. Inventory Turnover $33,945.0 2,086.9 2,005.1 Days' Sales in Inventory 21 days Foodstuff 22 days 22.8 16 days Winston Stores for Kracker and Foodstuff. Winston Stores has a higher c. The inventory turnover ratios and days' sales in inventory are similar turnover and a lower days' sales in inventory than Kracker and Foodstuff. These results suggest that Kracker and Foodstuff are less than Winston Stores in managing inventory. 17.4 Winston Stores 16.6 inventory efficient d. If Kracker had Winston Stores' days' sales in inventory, how much additional cash flow would have been generated from the smaller inventory relative to its actual average inventory position? Round interim calculations to one decimal place and your final answer to the nearest million. million
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