The general merchandise retail industry has a number of segments represented by the following companies: For a

Question:

The general merchandise retail industry has a number of segments represented by the following companies:

For a recent year, the following cost of merchandise sold and beginning and ending inventories have been provided from corporate annual reports for these three companies:

a. Determine the inventory turnover ratio for all three companies.
b. Determine the number of day's sales in inventory for all three companies.
c. Interpret these results based upon each company's merchandiseconcept.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...