Safeway, Inc., operated 1,743 stores as of December 29, 2007. The following data were taken from the

Question:

Safeway, Inc., operated 1,743 stores as of December 29, 2007. The following data were taken from the company€™s annual report. All dollar amounts are in millions.

Required
a. Compute Safeway€™s inventory turnover ratio for 2007 and 2006.
b. Compute Safeway€™s average days to sell inventory for 2007 and 2006.
c. Based on your computations in Requirements a and b, did Safeway€™s inventory management get better or worse from 2006 to2007?

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...