The table below contains selected information from recent financial statements of The Home Depot, Inc., andLowe's Companies, Inc., two companies in the home improvement retail industry ($ in millions):Home DepotLowe's2/2/142/3/131/31/142/1/13$78,812$74,754$53,417$50,52133,194Net salesCost of goods soldYear-end inventory51,42248,91234,94111,05710,7109,1278,600Industry averages:Gross profit ratio33%Inventory turnover ratio3.7 times99 daysAverage days in inventoryRequired:Calculate the gross profit ratio, the inventory turnover ratio, and the average days in inventory for the two compa-nies for their fiscal years ending in 2014. Compare your calculations for the two companies, taking into accountthe industry averages.

Gross profit ratio is computed by dividing the gross profit by the sales and is expressed in…

Answered: The table below contains selected…

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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Russell Department Stores, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2018 Russell Industry Average Net sales revenue $780,000 100.0 % Cost of goods sold 524,940 65.8 Gross Profit 255,060 34.2 Operating Expenses 162,240 19.7 Operating Income 92,820 14.5 Other Expenses 7,800 0.4 Net Income 85,020 14.1 % MORE INFO: Russell/industry average Total Assets $480,000 100.0 % total Liabilities 327,360 64.7 total Liabilities and Stockholders' Equity $480,000 100.0 % SOLVE for % of total (round total to one decimal place x.x%) Amount Percent of total Net Sales Revenue 780,000 Cost of goods sold 524,940 gross profit 255,060 operating expenses 162240 operating income 92820 other expenses 7800
Determining Cost of Goods Sold For a recent year, TechMart reported sales of $30,742 million. Its gross profit was $7,071 million. What was the amount of TechMart's cost of goods sold? (Enter answer in millions.)
Answer the following questions by using the following data taken from the financial statement of 2 companies: Company ABC Annual Sales ( on Credit ) $1,324,600 $936,720 Company DEF Annual Sales ( on Credit ) Cost of Goods Sold $2,748,308 Cost of Goods Sold $1,709,406 Average Inventory Average Accounts Receivable Average Accounts Payable $225,025 $346,007 $175,456 Average Inventory Average Accounts Receivable Average Accounts Payable $356,394 $300,000 $150,000 How much is the approximate Days Payable Outstanding of Company DEF? 32 1. 95 40 68 How much is the approximate Days Inventory Outstanding for Company АВС? * 88 90 2. 95 76 How much is the approximate Days Sales Outstanding for Company DEF? * 76 95 3. 87 40 How much is the approximate Days Inventory Outstanding for Company DEF? * 76 4. 95 90 88 How much is the approximate Days Payable Outstanding of Company АВС? * 95 5. 68 40 32 How much is the approximate Days Sales Outstanding for Company ABC? * 87 6. 95 76 40 How much is the…
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The income statement of Bob Christiana Company is presented here. BOB CHRISTIANA COMPANY Income Statement For the Year Ended November 30, 2012 Sales revenue $7,700,000 Cost of goods sold Beginning inventory Purchases $1,900,000 4,400,000 Goods available for sale Ending inventory 6,300,000 1,400,000 Total cost of goods sold 4,900,000 Gross profit 2,800,000 Operating expenses 1,150,000 Net income $1,650,000 Additional information: Accounts receivable increased $380,000 during the year, and inventory decreased $250,000. Prepaid expenses increased $170,000 during the year. Accounts payable to suppliers of merchandise decreased $340,000 during the year. Accrued expenses payable decreased $50,000 during the year. Operating expenses include depreciation expense of $110,000. Instructions Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2012, for…
Financial Ratios The financial statements for Jackson Enterprises (income statement, statement of owner’s equity, and balance sheet) are shown. Jackson EnterprisesIncome StatementFor Year Ended December 31, 20-- Revenue from sales: Sales $170,000 Less: Sales returns and allowances 10,000 Net sales $160,000 Cost of goods sold: Merchandise inventory, January 1, 20-- $7,700 Estimated returns inventory, January 1, 20-- 1,300 $9,000 Purchases $92,900 Less: Purchases returns and allowances $1,862 Purchases discounts 1,828 3,690 Net purchases $89,210 Add: Freight-in 961 Cost of goods purchased 90,171 Goods available for sale $99,171 Less: Merchandise inventory, Dec. 31, 20-- $8,300 Estimated returns inventory, Dec. 31, 20-- 1,200 9,500 Cost of goods sold 89,671 Gross profit…
Anthony Corporation reported the folowing amounts for the year Net sales $296, 000 Cost of goods sold Average inventory 138, e00 50,000 Anthony's gross profit ratio is Mole Choce 53
Calculating the Times-Interest-Earned Ratio Beech Company provided the following income statement for last year: Sales $24,350,735 Cost of goods sold 15,300,000 Gross margin $9,050,735 Operating expenses 4,910,685 Operating income $4,140,050 Interest expense 463,015 Income before taxes $3,677,035 Income taxes 1,461,214 Net income $2,215,821 Required: Calculate the times-interest-earned ratio. Round the answer to one decimal place.fill in the blank 1
Answer the following questions by using the following data taken from the financial statement of 2 companies:Company ABC Company DEFAnnual Sales ( on Credit ) $1,324,600 Annual Sales ( on Credit ) $2,748,308Cost of Goods Sold $936,720 Cost of Goods Sold $1,709,406Average Inventory $225,025 Average Inventory $356,394Average Accounts Receivable $346,007 Average Accounts Receivable $300,000Average Accounts Payable $175,456 Average Accounts Payable $150,000 1. Which company shows a better standing when comparing its DPO? 2. Which company shows a better standing when comparing its CCC?

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