Determine inventory turnover ratio for all three companies

Assignment Help Financial Accounting

Reference no: EM13900107

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

Company Name Merchandise Concept

Costco Wholesale Corporation Membership warehouse

Wal-Mart 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 for these three companies:

	Costco	Wal-Mart	JCPenney
Cost of merchandise sold	$42,092	$219,793	$11,285
Merchandise inventory, beginning	3,339	26,612	3,156
Merchandise inventory, ending	3,644	29,447	3,169

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 merchandise concept.

Reference no: EM13900107

Questions Cloud

Why does values added at all stages of production equal gdp : why does the values added at all stages of production equal GDP? wouldn't that be considered double counting?

Which method is used to compute its net cash provided : 1.Refer to Polaris statement of cash flows in Appendix A.

Theory of democratic government : What are the characteristics of American democracy? How does American democracy differ from the theory of democratic government?

What other areas of cost are likely to have cost uncertainty : The cost per square foot for the units is given in the text together with its standard deviation. What other areas of cost or revenue are likely to have cost uncertainty? How should these uncertainties be handled?

Determine inventory turnover ratio for all three companies : Determine the inventory turnover ratio for all three companies. Determine the number of day's sales in inventory for all three companies. Interpret these results based upon each company's merchandise concept.

What are its cash flows from financing activities : 1.Refer to Arctic Cat's statement of cash flows in Appendix A. What are its cash flows from financing activities for the year ended March 31, 2011? List the items and amounts.

Different measures for efficiency and effectiveness : Describe your answer in detail, citing references in APA format where appropriate. Your Journal entry should be at least 500 words.

Discuss the advantages of using a perpetual inventory system : Discuss the advantages and disadvantages of using a perpetual inventory system. From the data presented in this case, is there any indication of the adequacy of inventory levels during the year?

Course completion : "Course Completion" Please respond to the following: Thinking back on what you have learned in this course, identify the single most important economic principle learned and explain why it was more significant than any other principle or concept.

User Account

All Pages