We are comparing The Home Depot, Inc. and Lowe's Companies, Inc., the two giant retailers in...

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We are comparing The Home Depot, Inc. and Lowe's Companies, Inc., the two giant retailers in home & construction products and services, regarding their inventory turns and inventory costs. (a)[2] You need to find official corporate data for 2016 to fill in the first part of the table below. Specifically, you need to locate annual reports and 10-K fillings for 2016 on: - The Home Depot, Inc.: http://corporate.homedepot.com/ - Lowe's Companies, Inc.: http://www.lowes.com/ and find "Investor Relations" Assume that the average annual inventory holding cost rate is 28% for both companies; price and inventory turns are independent; and there are 365 days of operations in a year. Note that: Gross profit = Net sales - COGS; and Gross profit margin = Gross profit/Net Sales. For the following parts, show equations and calculations, and complete the table. (b)[2] What is the average number of days that a product typically stays in the two companies' inventories until sold (inventory duration)? (2 decimals) (c)[1] What are the inventory turns a year at these two retailers? (2 decimals) (d)[1] What are the per-unit inventory cost rates at the two companies? (%, 2 decimals) (e)[2] Regarding equivalent cordless drills with the same unit cost of $160, which retailer has the lower inventory holding cost and by how much? (Dollar amounts) (f)[2] Find the average gross profit on an inventory merchandise investment of $160. Then, find the immediate gross profit (gross profit minus inventory holding cost). Which company has the higher immediate gross profit? Net sales (millions of $) Gross profit (millions of $). 62,282 Cost of goods sold (COGS, millions of $) 32,313 Merchandise Inventory (millions of $) Gross profit margin (GMP, % 2decimals) Annual inventory cost rate (% 2 decimals) Part 2 - Inventory Turns Inventory duration (days, 2 decimals) Inventory turns (turns per year, 2 decimals) Part 3 - Inventory Costs A cordless drill ($) Per-unit inventory holding cost rate (%, 2 decimals) Inventory holding cost Inventory holding cost difference (Lowes- HomeDepot, $) Gross profit ($) Immediate gross profit ($) $94,595.00 12,549 34.15% 28.00% Home Depot 2.57% 142.02 Home Depot $160.00 22,464 42553 Lowe's Lowe's $65,017.00 10,458 65.44% 28.00% 4.06% 89.90% $160.00 We are comparing The Home Depot, Inc. and Lowe's Companies, Inc., the two giant retailers in home & construction products and services, regarding their inventory turns and inventory costs. (a)[2] You need to find official corporate data for 2016 to fill in the first part of the table below. Specifically, you need to locate annual reports and 10-K fillings for 2016 on: - The Home Depot, Inc.: http://corporate.homedepot.com/ - Lowe's Companies, Inc.: http://www.lowes.com/ and find "Investor Relations" Assume that the average annual inventory holding cost rate is 28% for both companies; price and inventory turns are independent; and there are 365 days of operations in a year. Note that: Gross profit = Net sales - COGS; and Gross profit margin = Gross profit/Net Sales. For the following parts, show equations and calculations, and complete the table. (b)[2] What is the average number of days that a product typically stays in the two companies' inventories until sold (inventory duration)? (2 decimals) (c)[1] What are the inventory turns a year at these two retailers? (2 decimals) (d)[1] What are the per-unit inventory cost rates at the two companies? (%, 2 decimals) (e)[2] Regarding equivalent cordless drills with the same unit cost of $160, which retailer has the lower inventory holding cost and by how much? (Dollar amounts) (f)[2] Find the average gross profit on an inventory merchandise investment of $160. Then, find the immediate gross profit (gross profit minus inventory holding cost). Which company has the higher immediate gross profit? Net sales (millions of $) Gross profit (millions of $). 62,282 Cost of goods sold (COGS, millions of $) 32,313 Merchandise Inventory (millions of $) Gross profit margin (GMP, % 2decimals) Annual inventory cost rate (% 2 decimals) Part 2 - Inventory Turns Inventory duration (days, 2 decimals) Inventory turns (turns per year, 2 decimals) Part 3 - Inventory Costs A cordless drill ($) Per-unit inventory holding cost rate (%, 2 decimals) Inventory holding cost Inventory holding cost difference (Lowes- HomeDepot, $) Gross profit ($) Immediate gross profit ($) $94,595.00 12,549 34.15% 28.00% Home Depot 2.57% 142.02 Home Depot $160.00 22,464 42553 Lowe's Lowe's $65,017.00 10,458 65.44% 28.00% 4.06% 89.90% $160.00

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Question 2016 amount in million Home Depot Lowes Companies End of fiscal year date Jan 29 2017 Feb 3 ... View the full answer