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:
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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. Use 365 days and round to one decimal place.
c. Interpret these results based on each company's merchandise concept?
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,... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
a Costco Walmart JCPenney 1 Cost of merchandise sold 86823 335127 11042 Merchandise inventory beginn...View the full answer
Financial Accounting
ISBN: 978-1305088436
14th edition
Authors: Carl S. Warren, Jim Reeve, Jonathan Duchac
