Home / Answered Questions / Other / real-world-financials-the-table-below-contains-selected-information-from-recent-financial-statements-aw578
(Solved): Real World Financials The Table Below Contains Selected Information From Recent Financial Statements...
Real World Financials The table below contains selected information from recent financial statements of Green and White, two companies in the home improvement retail industry (S in millions): Net sales Coat of goods sold Year-end inventory Green 1/28/2018 1/29/2017 $ 101, 104 $94.795 66,748 62,482 12,948 12,749 White 2/2/2018 2/3/2017 $ 68,819 $ 65,217 45,410 42,753 11,593 10,658 Required: Calculate the gross profit ratio, the inventory turnover ratio, and the average days in inventory for the two companies for their fiscal years ending in 2018. (Use 365 days a year. Round "Inventory turnover ratio" to 2 decimal places. Enter dollar amounts in millions rounded to the nearest whole number.) = Choose Numerator: Gross profit 34,3561 23,406 X Gross Profit Ratio Choose Denominator: Net sales 101,104 68,819 Gross Profit Ratio Gross profit ratio 33.98 34.01 Green White = = % % = Inventory Turnover Ratio Choose Numerator: Choose Denominator Cost of goods sold 1 Average inventory 66,7481 12,849 45,4101 11,128 Inventory Turnover Ratio Inventory turnover ratio 5.19 4.08 Green White = = times times = Choose Numerator: Total number of days 365 365 Average Days in Inventory Choose Denominator: Inventory turnover ratio 5.19 X 4.08 Inventory Average days in inventory 70 89 Green White = = days days *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
We have an Answer from Expert View Expert Answer
Gross profit ratio = (net sales-cost of goods sold)/net sales Inventory turnover ratio = cost of goods sold / average inventory = cost of goods sold / ((beginning inventory+ending inventory)/2) Averag