Kroger, a national supermarket chain, reported the following data (in millions) in its financial statements for 2005: Total revenue $56,434 Total assets at end of year 20,491 Total assets at beginning of year 20,763 a. Compute the ratio of net sales to assets for 2005. Round to two decimal places. b. Would you expect the ratio of net sales to assets for Kroger to be similar to or different from that of Tiffany & Co.? Tiffany is the large North American retailer of jewelry, with a ratio of net sales to average total assets of 0.87.
Kroger, a national supermarket chain, reported the following data (in millions) in its financial statements for 2005: Total revenue $56,434 Total assets at end of year 20,491 Total assets at beginning of year 20,763 a. Compute the ratio of net sales to assets for 2005. Round to two decimal places. b. Would you expect the ratio of net sales to assets for Kroger to be similar to or different from that of Tiffany & Co.? Tiffany is the large North American retailer of jewelry, with a ratio of net sales to average total assets of 0.87.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Kroger, a national supermarket chain, reported the following data (in millions) in its financial statements for 2005:
|
Total revenue |
$56,434 |
|
Total assets at end of year |
20,491 |
|
Total assets at beginning of year |
20,763 |
a. Compute the ratio of net sales to assets for 2005. Round to two decimal places.
b. Would you expect the ratio of net sales to assets for Kroger to be similar to or different from that of Tiffany & Co.? Tiffany is the large North American retailer of jewelry, with a ratio of net sales to average total assets of 0.87.
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