GameStop Corp. is the worlds largest multichannel video game retailer. The company reported the following amounts (in

Question:

GameStop Corp. is the world’s largest multichannel video game retailer. The company reported the following amounts (in millions) in its annual financial statements at the end of January.

2016 2015 $9,365 6,445 1,145 Net Sales Revenue Cost of Goods Sold Beginning Inventory $9,295 6,520 1,200 1,145 Ending In

Required:

1. Determine the inventory turnover ratio and average days to sell inventory for 2016 and 2015. Round your answers to one decimal place.

2. Comment on any changes in these measures, and compare the effectiveness of inventory managers at GameStop with those at Best Buy, where inventory turned over 5.9 times during 2016 (61.9 days to sell).

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,... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

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