Ruby Tuesdays, Inc., operated 656 casual dining restaurants across the United States as of June 1, 2010.
Question:
Ruby Tuesday’s, Inc., operated 656 casual dining restaurants across the United States as of June 1, 2010. Zale Corporation claims to be a leading supplier retailer of fine jewelry. The following data were taken from these companies’ 2010 annual reports. All dollar amounts are in thousands.
.png)
Required
a. Before performing any calculations, speculate as to which company will take the longest to sell its inventory. Explain the rationale for your decision.
b. Calculate the inventory turnover ratios for Ruby Tuesday’s and Zale Corporation.
c. Calculate the average days to sell inventory for Ruby Tuesday’s and Zale Corporation.
d. Do the calculations from Requirements b and c confirm your speculations in Requirementa?
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...
Step by Step Answer:
a One would expect a restaurant which sells low cost perishable goods to sell its in...View the full answer
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
