What were mcdonalds inventory turns

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Reference no: EM131345942

(McDonald's) The following figures are taken from the 2003 financial statements of McDonald's and Wendy's.! Figures are in million dollars.

	McDonalds	Wendy's
Inventory	$129.40	$54.40
Revenue	17140.5	3148.9
Cost of Goods Sold	11943.7	1634.6
Gross Profit	5196.8	1514.4

a. In 2003, what were McDonald's inventory turns? What were Wendy's inventory turns?

b. Suppose it costs both McDonald's and Wendy's $3 (COGS) per their value meal offerings, each sold at the same price of $4. ASSW11e that the cost of inventory for both companies is 30 percent a year. Approximately how much does McDonald's save in inventory cost per value meal compared to that of Wendy's? You may assume the inventory turns are independent of the price.

Reference no: EM131345942

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