Question
Asked Dec 10, 2019
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Kroger Co., a national supermarket chain, reported the following data (in millions) in its
financial statements for a recent year:
Total revenue
$108,465
Total assets at end of year
30,556
Total assets at beginning of year
29,281
a. Compute the asset turnover. Round to two decimal places.
b.
Tiffany & Co. is a large North American retailer of jewelry with an asset
turnover of 0.86. Why would Tiffany's asset turnover be lower than that of Kroger?
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Kroger Co., a national supermarket chain, reported the following data (in millions) in its financial statements for a recent year: Total revenue $108,465 Total assets at end of year 30,556 Total assets at beginning of year 29,281 a. Compute the asset turnover. Round to two decimal places. b. Tiffany & Co. is a large North American retailer of jewelry with an asset turnover of 0.86. Why would Tiffany's asset turnover be lower than that of Kroger?

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Expert Answer

Step 1

a.

Calculate the asset turnov...

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Net revenue Asset turnover r = Average total assets S108, 465 S29, 281+S30,556 S108, 465 $29,918.5 = 3.63times

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