Question: The table below contains selected information from recent financial statements of The Tool Station, Incorporated, and Howard's Companies, Incorporated, two companies in the home improvement
The table below contains selected information from recent financial statements of The Tool Station, Incorporated, and Howard's Companies, Incorporated, two companies in the home improvement retail industry ($ in millions):
Net sales: Tool Station: 102,804 (1/28/2020); 96,495 (1/29/2019)
Howard's: 70,519 (2/2/2020): 66,917 (2/3/2019)
Cost of goods sold: Tool Station: 68,448 (1/28/2020); 64,182 (1/29/2019)
Howard's: 47,110 (2/20/2020); 44,453 (2/3/2019)
Year-end inventory: Tool Station: 14,648 (1/28/2020); 14,449 (1/29/2019)
Howard's 13,293 (2/2/2020); 12,358 (2/3/2019)
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 2020
Note: Use 365 days a year. Round "Inventory turnover ratio" to 2 decimal places. Enter dollar amounts in millions rounded to the nearest whole number.
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