AutoZone and O'Reilly are two competitors in the retail automotive parts industry. AutoZone O'Reilly Average 2015 Inventory $3,330,863 $2,642,897 2015 Sales 10,587,339 8,366,673 2015 Cost of goods sold 4,860,309 3,804,031 Average 2014 Inventory $3,050,552 $2,514,913 2014 Sales 9,875,312 7,616,080 2014 Cost of goods sold 4,540,406 3,507,180 Use the information above to compute the companies' gross profit margin and days inventory outstanding for both years.
AutoZone and O'Reilly are two competitors in the retail automotive parts industry. AutoZone O'Reilly Average 2015 Inventory $3,330,863 $2,642,897 2015 Sales 10,587,339 8,366,673 2015 Cost of goods sold 4,860,309 3,804,031 Average 2014 Inventory $3,050,552 $2,514,913 2014 Sales 9,875,312 7,616,080 2014 Cost of goods sold 4,540,406 3,507,180 Use the information above to compute the companies' gross profit margin and days inventory outstanding for both years.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 12E
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Question
Using Inventory Analysis Tools
AutoZone and O'Reilly are two competitors in the retail automotive parts industry.
| AutoZone | O'Reilly | |
|---|---|---|
| Average 2015 Inventory | $3,330,863 | $2,642,897 |
| 2015 Sales | 10,587,339 | 8,366,673 |
| 2015 Cost of goods sold | 4,860,309 | 3,804,031 |
| Average 2014 Inventory | $3,050,552 | $2,514,913 |
| 2014 Sales | 9,875,312 | 7,616,080 |
| 2014 Cost of goods sold | 4,540,406 | 3,507,180 |
Use the information above to compute the companies' gross profit margin and days inventory outstanding for both years.
Round answers to one decimal place (ex: 0.2345 = 23.5%).
| Gross Profit Margin | ||
|---|---|---|
| AutoZone | O'Reilly | |
| 2015 | Answer
|
Answer
|
| 2014 | Answer
|
Answer
|
Round to answers to one decimal place.
| Days Inventory Outstanding | ||
|---|---|---|
| AutoZone | O'Reilly | |
| 2015 | Answer
|
Answer
|
| 2014 | Answer
|
Answer
|
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