Ruby Tuesday’s, Inc. operated 646 casual dining restaurants across the United States as of May 31, 2016. 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 January 30, 2016, it had over 3,500 retail outlets. The following data were taken from these companies’ 2016 annual reports. All dollar amounts are in thousands.

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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Signet Jewelers January 30, 2016 Ruby Tuesday's May 31, 2016 $1,091,228 298,529 (50,682) 13,799 Revenue Cost of goods sold Net income Merchandise inventory $6,550,200 4,109,800 2,453,900