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Ratio of sales to assets Kroger, a national supermarket chain, reported the following data (in millions) in its financial statements for a recent year: Total revenue $90,374 Total assets at end of year 23,476 Total assets at beginning of year 23,505 a. Compute the ratio of sales to assets. Round to two decimal places. b. Tiffany & Co. is a large North American retailer of jewelry, with a ratio of sales to assets of 0.92. Why would Tiffany’s ratio of sales to assets be lower than that of Kroger?

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Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615
BuyFind

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615

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Chapter
Section
Chapter 6, Problem 6.31EX
Textbook Problem

Ratio of sales to assets

Kroger, a national supermarket chain, reported the following data (in millions) in its financial statements for a recent year:

Total revenue $90,374
Total assets at end of year 23,476
Total assets at beginning of year 23,505

a. Compute the ratio of sales to assets. Round to two decimal places.

b. Tiffany & Co. is a large North American retailer of jewelry, with a ratio of sales to assets of 0.92. Why would Tiffany’s ratio of sales to assets be lower than that of Kroger?

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Chapter 6 Solutions

Accounting (Text Only)
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