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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: Foodstuff Inc. $34,675.0 2,131.8 2,048.2 Winston Stores $35,770.0 1,615.0 1,521.0 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. Days' Sales in Inventory days Cost of merchandise sold Inventory, beginning of year Inventory, end of year Company names Kracker Corp. $33,580.0 1,951.3 1,912.7 Kracker Foodstuff Winston Stores Inventory Turnover UQ c. The inventory turnover ratios and days' sales in inventory are and Foodstuff. These results suggest that Kracker and Foodstuff are 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 days days for Kracker and Foodstuff. Winston Stores has a efficient than Winston Stores in managing inventory. inventory turnover and a days' sales in inventory than Kracker

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: Foodstuff Inc. $34,675.0 2,131.8 2,048.2 Winston Stores $35,770.0 1,615.0 1,521.0 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. Days' Sales in Inventory days Cost of merchandise sold Inventory, beginning of year Inventory, end of year Company names Kracker Corp. $33,580.0 1,951.3 1,912.7 Kracker Foodstuff Winston Stores Inventory Turnover UQ c. The inventory turnover ratios and days' sales in inventory are and Foodstuff. These results suggest that Kracker and Foodstuff are 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 days days for Kracker and Foodstuff. Winston Stores has a efficient than Winston Stores in managing inventory. inventory turnover and a days' sales in inventory than Kracker

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Company names Kracker Foodstuff Kracker Corp. $33,580.0 1,951.3 1,912.7 Winston Stores Foodstuff Inc. 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 Days' Sales in Inventory days days days $34,675.0 2,131.8 2,048.2 Winston Stores $35,770.0 1.615.0 1,521.0 c. The inventory turnover ratios and days' sales in inventory are and Foodstuff. These results suggest that Kracker and Foodstuff are for Kracker and Foodstuff. Winston Stores has a efficient than Winston Stores in managing inventory. inventory turnover and a days' sales in inventory than Kracker 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 Company names Kracker Foodstuff Kracker Corp. $33,580.0 1,951.3 1,912.7 Winston Stores Foodstuff Inc. 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 Days' Sales in Inventory days days days $34,675.0 2,131.8 2,048.2 Winston Stores $35,770.0 1.615.0 1,521.0 c. The inventory turnover ratios and days' sales in inventory are and Foodstuff. These results suggest that Kracker and Foodstuff are for Kracker and Foodstuff. Winston Stores has a efficient than Winston Stores in managing inventory. inventory turnover and a days' sales in inventory than Kracker 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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