Lowe's Companies Inc. is a competitor of Home Depot. It reports the following financial statement data...

Transcribed Image Text:

Lowe's Companies Inc. is a competitor of Home Depot. It reports the following financial statement data for 2014, 2015 and 2016. Use these data to answer the requirements below. S millions Revenue. Cost of goods sold. 3. 4. Gross profit. Accounts receivable. Inventory.. Accounts payable. Required 1. Compute the gross profit margin for 2014, 2015, and 2016. 2. Compute the days inventory outstanding for 2015 and 2016. Compute the days payable outstanding for 2015 and 2016. 2016 $59,074 38,504 20,570 0 9.458 5,633 2015 $56,223 $53,417 36,665 34,941 19,558 0 2014 8,911 5,124 18,476 0 9.127 5,008 Compute the cash conversion cycle for 2015 and 2016, By how many days did the cash conversion cycle improve during 2016? 5. Compute the cash savings in 2016 due to the improvement in the cash conversion cycle. Lowe's Companies Inc. is a competitor of Home Depot. It reports the following financial statement data for 2014, 2015 and 2016. Use these data to answer the requirements below. S millions Revenue. Cost of goods sold. 3. 4. Gross profit. Accounts receivable. Inventory.. Accounts payable. Required 1. Compute the gross profit margin for 2014, 2015, and 2016. 2. Compute the days inventory outstanding for 2015 and 2016. Compute the days payable outstanding for 2015 and 2016. 2016 $59,074 38,504 20,570 0 9.458 5,633 2015 $56,223 $53,417 36,665 34,941 19,558 0 2014 8,911 5,124 18,476 0 9.127 5,008 Compute the cash conversion cycle for 2015 and 2016, By how many days did the cash conversion cycle improve during 2016? 5. Compute the cash savings in 2016 due to the improvement in the cash conversion cycle.

Answer rating: 100% (QA)

To answer the requirements based on the financial data for Lowes Companies Inc lets calculate each of the requested metrics 1 Compute the gross profit ... View the full answer