Question: The table below contains selected financial information included in the 2009 financial statements of Saks, Inc., and Dillards, Inc., two companies in the department store

The table below contains selected financial information included in the 2009 financial statements of Saks, Inc., and Dillards, Inc., two companies in the department store industry.

Required:
1. Calculate the 2009 gross profit ratio, inventory turnover ratio, and average days in inventory for both companies. Evaluate the management of each company's investment in inventory. Industry averages for these ratios are as follows:
Gross Profit ........ 25%
Inventory ......... 2.73
Average days in inventory .. 134

2. Obtain annual reports from three corporations in an industry other than autos and compare the management of each company's investment in inventory.

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Requirement 1 in millions Saks Dillards Gross profit ratio 968 32 2003 29 3030 6831 Inventory turnov... View full answer

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