a. Calculate gross profit margin for each year for both companies. b. Determine the common-size inventory...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
a. Calculate gross profit margin for each year for both companies. b. Determine the common-size inventory for each year for both companies. c. Compute inventory turnover and days average inventory outstanding for 2018. d. Based on the metrics in parts a, b, and c, how do we assess the two companies' inventory management? Sales..... Cost of sales... Gross profit. ... Inventory.. Total assets Carrefour Group in € millions 2018 €76,000 60,850 15,150 6,135 47,378 2017 €78,315 62,311 16,004 6,690 47,813 Tesco PLC in £ millions 2018 2017 £57,491 €55,917 54,141 53,015 3,350 2,902 2,263 44,862 2,301 45,853 a. Calculate gross profit margin for each year for both companies. b. Determine the common-size inventory for each year for both companies. c. Compute inventory turnover and days average inventory outstanding for 2018. d. Based on the metrics in parts a, b, and c, how do we assess the two companies' inventory management? Sales..... Cost of sales... Gross profit. ... Inventory.. Total assets Carrefour Group in € millions 2018 €76,000 60,850 15,150 6,135 47,378 2017 €78,315 62,311 16,004 6,690 47,813 Tesco PLC in £ millions 2018 2017 £57,491 €55,917 54,141 53,015 3,350 2,902 2,263 44,862 2,301 45,853
Expert Answer:
Answer rating: 100% (QA)
a Gross Profit Margin To calculate the gross profit margin for each company we need to divide the gross profit by the sales revenue Carrefour Group Gr... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
Students also viewed these finance questions
-
Analyze the running time of the code fragments below. For simplicity, assume that n is a power of 2. for (i = 1; i < n; i++) { j = n; while (j = 1) { // body of the while loop j = lj/2] // requires...
-
Condensed statement of financial position and income statement data for Pronghorn Ltd. are shown below: Instructions (a) Calculate the receivables turnover ratio, inventory turnover ratio , and...
-
Question 2: The following term structure of spot rates is prevailing in the economy: Horizon (years) 1 2 3 Yield (%) 3 4 5 This means you can trade zero coupon bonds with face values of $1000 at...
-
When the Beacon Computer Company filed for bankruptcy under Chapter 7 of the U.S. bankruptcy code, it had the following balance sheet information: Assuming there are no legal fees associated with the...
-
The following technical terms appear in this supplement. Check that you know the meaning of each. Profit Sales revenue Cash sale Credit sale Debtor
-
C. Gomez, corporate engineer of Allied Products Ltd. is proposing the replacement of existing equipment with more efficient equipment. According to information received by Gomez, the proposed...
-
Deckle Printing Company currently leases its only copy machine for $ 1,200 a month. The company is considering replacing this leasing agreement with a new contract that is entirely commission based....
-
A private equity fund was reported to have an IRR of 1 5 % over its 8 year life span. You know that they makde an acquisition when the fund started from which they received a dividend 6 months later....
-
Teresina Amusement Park, SA has a fiscal year ending on September 30. Selected data from the September 30 worksheet are as follows. Instructions (a) Prepare a complete worksheet. (b) Prepare a...
-
When a company amends a pension plan, for accounting purposes, prior service costs should be O treated as a prior period adjustment because no future periods are benefited. O amortized in accordance...
-
Imagine that you were the salesperson. How would you have conducted the sales interview?
-
Of what practical importance is the study of organisational buyer behaviour to the personal selling function?
-
Compare and contrast the ways in which consumers and organisations buy products and services.
-
For most of his life, New York City businessman I. Jerome Riker was a powerful man with an extensive network of influential friends and business associates. Probably the most influential of Riker's...
-
FOF incorporated FOF Proprietary Funds, Ltd. (FOF Prop) as an umbrella for specialized investment accounts that were managed by its investment advisers. Each of FOF Props investment advisers had a...
-
A clause in many insurance policies require the business owner to carry at least 80% (percentage may vary) of the replacement cost or actual cost of the building. This clause is known as what? define...
-
Michelles trust is subject to 3.8% surtax on the lesser of the trusts net investment income or the excess of the trusts adjusted gross income over the $12,400 threshold (the highest trust tax rate)....
-
The accountant for Comet Holdings Ltd. has prepared the following table in order to explain to the company's board of directors the transactions that caused various investment accounts to increase...
-
One of your classmates has come to you because he is struggling to understand the key differences between perpetual and periodic inventory systems. Prepare an explanation of the key differences for...
-
At the beginning of the current golf season, on April 1, 2018, the general ledger of In the Pines Golf Shop showed Cash $4,200; Inventory $19,500; Common Shares $12,000; and Retained Earnings...
-
A DFD is a representation of which of the following? a. relationship among modules, data, and programs of an AIS b. flow of data in an organization c. decision rules in a computer program d. computer...
-
Which of the following statements is false? a. Flowcharts make use of many symbols. b. A flowchart emphasizes the flow of documents or records containing data. c. DFDs help convey the timing of...
-
For each of the following scenarios identify which data processing method (batch or online, real-time) would be the most appropriate. a. Make an airline reservation b. Register for a university...
Study smarter with the SolutionInn App