Kroger, Sprouts Farmers Market, Inc., and Whole Foods Markets, 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: Kroger Sprouts WholeFoodsCost of merchandise sold $85,512 $2,541 $9,973Inventory, end of year 5,688 165 500Inventory, beginning of year 5,651 143 441 a. Determine the inventory turnover. Round to two decimal places.b. Determine the days’ sales in inventory. Round to one decimal place.c. Interpret your results in parts (a) and (b).d. If Kroger had Whole Foods’ days’ sales in inventory, how much additional cash flow (rounded to nearest million) would have been generated from the smaller inventory relative to its actual average inventory position?
Kroger, Sprouts Farmers Market, Inc., and Whole Foods Markets, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent
Kroger Sprouts WholeFoods
Cost of merchandise sold $85,512 $2,541 $9,973
Inventory, end of year 5,688 165 500
Inventory, beginning of year 5,651 143 441
a. Determine the inventory turnover. Round to two decimal places.
b. Determine the days’ sales in inventory. Round to one decimal place.
c. Interpret your results in parts (a) and (b).
d. If Kroger had Whole Foods’ days’ sales in inventory, how much additional
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