Reference no: EM132793245
Question - The Kroger Company reported the following data in its annual report (in millions).
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January 28, 2017
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January 30, 2016
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January 31, 2015
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Net sales
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$115,337
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$109,830
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$108,465
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Cost of sales (using LIFO)
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89,502
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85,496
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85,512
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Year-end inventories using FIFO
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7,852
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7,440
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6,933
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Year-end inventories using LIFO
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6,561
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6,168
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5,688
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Required -
1. Compute Kroger's inventory turnovers for fiscal years ending January 28, 2017, and January 30, 2016, using:
a. cost of sales and LIFO inventory
b. cost of sales and FIFO inventory
2. Some firms calculate inventory turnover using sales rather than cost of goods sold in the numerator. Calculate Kroger's fiscal years ending January 28, 2017, and January 30, 2016, turnover, using:
a. Inventory turnover using sales and LIFO inventory
b. Inventory turnover using sales and FIFO inventory