What were wendys inventory turns

Assignment Help Financial Management

Reference no: EM13889396

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

McDonald's Wendy's

Inventory $ 1 29.4 $ 54.4

Revenue 1 7, 1 40.5 3,1 48.9

Cost of goods sold 1 1 ,94 3 . 7 1 , 634.6

Gross profit 5 , 1 96.8 1 ,5 1 4.4

a. I n 2003, what were McDonald’s inventories turn? 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: EM13889396

Questions Cloud

Find relevant cash flows with proposed marketing campaign : Marcus Tube, a manufacturer of high-quality aluminum tubing, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 3% per year, Marcus has been unsuccessful in sharing this growt..

What is the book value of the machine : Troy Industries purchased a new machine 3 years ago for $80,000. It is being depreciated under MACRS with a 5-year recovery period using the percentages given in Table 4.2 on page 000. Assume a 40% tax rate. What is the book value of the machine?

What steps are involved in developing activity-based costing : What steps are involved in developing an activity- based costing system? Explain the preparation and use of a value-added/ non-value-added activity flowchart in an ABC system.

Annual payment corporate bond has a market price : A 10-year annual payment corporate bond has a market price of $1058. It pays annual interest of $60 and its required rate of return is 4 percent. By how much is the bond mispriced?

What were wendys inventory turns : McDonald's) The following figures are taken from the 2003 financial statements of McDonald's and Wendy's. ! Figures are in million dollars. I n 2003, what were McDonald’s inventories turn? What were Wendy' s inventory turns?

Discuss ids and ips, a signature is a digital certificate : When discussing IDS and IPS, a signature is a digital certificate used to identify the author of a rule.

What is the pv for both the options : You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $76,000 per year for the next two years, If the interest rate is 9 percent compounded monthly, what is the..

How the article relates to the concepts and principles : The first half of the write-up should summarize the article and the remainder should address how the article relates to the concepts and principles covered in the course. The article may address any aspect of marketing

What is formula for computing activity-based overhead rates : What are the principal differences between activity- based costing (ABC) and traditional product costing? What is the formula for computing activity-based overhead rates?

User Account

All Pages