Ruby Tuesday’s, Inc. operated 605 casual dining restaurants across the United States as of June 6, 2017. Signet Jewelers Limited claims to be the world’s largest retailer of diamond jewelry. Its stores include Zales, Jared, Kay Jewelers, and Piercing Pagoda. As of February 3, 2018, it had over 3,000 retail outlets. The following data were taken from these companies’ annual reports. All dollar amounts are in millions.

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 Signet.

c. Calculate the average days to sell inventory for Ruby Tuesday’s and Signet.

d. Do the calculations from Requirements b and c confirm your speculations in Requirement a?

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Ruby Tuesday's June 6, 2017 Signet Jewelers February 3, 2018 $952 $6,253 4,063 202 Revenue Cost of goods sold Operating income before tax Merchandise inventory 269 (108) 11 2,281