The January 28, 2017 (fiscal year 2016) financial statements of Caleres, Inc. reported the following information (in thousands):

Caleres, Inc.	2016	2015
Cost of sales	$1,517,397	$1,529,527
Inventories, net	585,764	546,745
LIFO reserve	4,345	4,094

The footnotes to the 2016 financial statements of Skechers U.S.A., Inc. reported that the company uses the FIFO method of accounting for inventories. Financial statements reported the following (in thousands):

Skechers U.S.A., Inc.	2016	2015
Cost of sales	$1,928,715	$1,723,315
Inventories, net	700,515	620,247

a. Calculate the two companies’ days-inventory-outstanding ratios for 2016 to allow for a comparison.

b. Which company is more efficient with its inventory?

c. Suggest two ways that Calares might improve the days-inventory-outstanding.

Answer rating: 100% (QA)

a Days inventory outstand ratio Inventory cost of good sold days in a year In 2016 For Caleres Inc I... View the full answer