Question: Real World Financials The table below contains selected information from recent financial statements of Green and White, two companies in the home improvement retail industry
Real World Financials The table below contains selected information from recent financial statements of Green and White, two companies in the home improvement retail industry ($ in millions):
| Green | White | |||||||||||
| 1/28/2018 | 1/29/2017 | 2/2/2018 | 2/3/2017 | |||||||||
| Net sales | $ | 102,104 | $ | 95,795 | $ | 69,819 | $ | 66,217 | ||||
| Cost of goods sold | 67,748 | 63,482 | 46,410 | 43,753 | ||||||||
| Year-end inventory | 13,948 | 13,749 | 12,593 | 11,658 | ||||||||
Required: Calculate the gross profit ratio, the inventory turnover ratio, and the average days in inventory for the two companies for their fiscal years ending in 2018.
| Gross Profit Ratio | ||||||
| Choose Numerator: | / | Choose Denominator: | = | Gross profit Ratio | ||
| Gross Profit | / | Net Sales | = | Gross Profit Ratio | ||
| Green | / | = | % | |||
| White | / | = | % | |||
| Inventory Turnover ratio | ||||||
| Choose Numerator: | / | Choose Denominator: | = | Inventory Turnover ratio | ||
| cost of goods sold | / | average inventory | = | inventory turnover ratio | ||
| Green | / | = | times | |||
| White | / | = | times | |||
| Average Days in Inventory | ||||||
| Choose Numerator: | / | Choose Denominator: | = | Average Days in Inventory | ||
| total number of days | / | inventory turnover ratio | = | average days in inventory | ||
| Green | / | = | days | |||
| White | / | = | days | |||
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock