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

Question:

The general merchandise retail industry has a number of segments represented by the following companies:
Company Name Merchandise Concept
Costco Wholesale Corporation ....... Membership warehouse
Walmart .................. Discount general merchandise
JCPenney................. Department store

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

a. Determine the inventory turnover ratio for all three companies. Round to one decimal place.
b. Determine the number of days' sales in inventory for all three companies. Round to one decimal place.
c. Interpret these results based on 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,...