The following table contains selected financial information included in the 2016 financial statements of Kohl's Corporation and Dillards, Inc. , two companies in the department store industry.

($ in millions) Kohl's Corp. Dillards, Inc.
	2016 2015		2016 2015
Balance Sheet: Inventories	$4,038	$3,814	$1,375	$1,374
Income statement-2016: net sales cost of goods sold	$19,204		$6,755
	12,265		4,351

Required:

Calculate the 2016 gross profit ratio, the inventory turnover ratio, and the average days in inventory for both companies. Evaluate the management of the investment in inventory of each company.

Note: You can get copies of annual reports from your library, from friends who are stockholders, from the investor relations department of corporations, from a stockbroker friend, or from EDGAR (Electronic Data Collection, Analysis, and Recovery) on the Internet. ( www.sec.gov ).

Answer rating: 100% (QA)

The gross profit ratio is calculated as gross profit divided by net sales For Kohls Corp Gross profi... View the full answer