The following table contains selected financial information included in the 2016 financial statements of Kohl's Corporation and
Question:
The following table contains selected financial information included in the 2016 financial statements of Kohl's Corporation and Dillards, Inc. , two companies in the department store industry.
($ in millions) Kohl's Corp. Dillards, Inc. | ||||
2016 2015 | 2016 2015 | |||
Balance Sheet: Inventories | $4,038 | $3,814 | $1,375 | $1,374 |
Income statement-2016: net sales cost of goods sold | $19,204 | $6,755 | ||
12,265 | 4,351 |
Required:
Calculate the 2016 gross profit ratio, the inventory turnover ratio, and the average days in inventory for both companies. Evaluate the management of the investment in inventory of each company.
Note: You can get copies of annual reports from your library, from friends who are stockholders, from the investor relations department of corporations, from a stockbroker friend, or from EDGAR (Electronic Data Collection, Analysis, and Recovery) on the Internet. ( www.sec.gov ).
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas