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 invento (in millions) information: Cost of merchandise sold Inventory, beginning of year Inventory, end of year Kracker Corp. $33,580.0 1,951.3 1,912.7 Foodstuff Inc. $34,675.0 2,131.8 2,048.2 Winston Stores $35,770.0 1,514.1 1,425.9 thie 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. Company names Days' Sales in Inventory Kracker days Foodstuff days Winston Stores days ✔ c. The inventory turnover ratios and days' sales in inventory are similar ✔ for Kracker and Foodstuff. Winston Stores has a higher inventory turnover and a lower ✔ days' sales in inventory than Kracker and Foodstuff. These results suggest that Kracker and Foodstuff are less ✔ efficient than Winston Stores in managing inventory. Inventory Turnover 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
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 invento (in millions) information: Cost of merchandise sold Inventory, beginning of year Inventory, end of year Kracker Corp. $33,580.0 1,951.3 1,912.7 Foodstuff Inc. $34,675.0 2,131.8 2,048.2 Winston Stores $35,770.0 1,514.1 1,425.9 thie 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. Company names Days' Sales in Inventory Kracker days Foodstuff days Winston Stores days ✔ c. The inventory turnover ratios and days' sales in inventory are similar ✔ for Kracker and Foodstuff. Winston Stores has a higher inventory turnover and a lower ✔ days' sales in inventory than Kracker and Foodstuff. These results suggest that Kracker and Foodstuff are less ✔ efficient than Winston Stores in managing inventory. Inventory Turnover 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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![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
Kracker
Foodstuff
Kracker
Corp.
$33,580.0
1,951.3
1,912.7
Winston Stores
Foodstuff
Inc.
$34,675.0
2,131.8
2,048.2
the
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.
Company names
Days' Sales in Inventory
days
days
days
c. The inventory turnover ratios and days' sales in inventory are similar ✔ for Kracker and Foodstuff. Winston Stores has a higher ✔
Foodstuff are less ✓ efficient than Winston Stores in managing inventory.
Winston
Stores
Inventory Turnover
$35,770.0
1,514.1
1,425.9
inventory turnover and a lower ✓ days' sales in inventory than Kracker and Foodstuff. These results suggest that Kracker and
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F69cc1a7e-a06f-4a10-be4a-e9181d247772%2Feabfbef2-cb2d-4fc6-8528-0f4a37a38b05%2Fvbk6jb_processed.png&w=3840&q=75)
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
Kracker
Foodstuff
Kracker
Corp.
$33,580.0
1,951.3
1,912.7
Winston Stores
Foodstuff
Inc.
$34,675.0
2,131.8
2,048.2
the
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.
Company names
Days' Sales in Inventory
days
days
days
c. The inventory turnover ratios and days' sales in inventory are similar ✔ for Kracker and Foodstuff. Winston Stores has a higher ✔
Foodstuff are less ✓ efficient than Winston Stores in managing inventory.
Winston
Stores
Inventory Turnover
$35,770.0
1,514.1
1,425.9
inventory turnover and a lower ✓ days' sales in inventory than Kracker and Foodstuff. These results suggest that Kracker and
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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