Inventory Turnover and Number of Days' Sales in Inventory
Kroger, Safeway Inc., and Winn-Dixie Stores Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory information:
The cost of goods sold for each company was:
a. Determine the number of days' sales in inventory and the inventory turnover for the three companies. Assume 365 days a year. Round all interim calculations to one decimal place. For number of days' sales in inventory, round final answers to the nearest day, and for inventory turnover, round to one decimal place.
b. If Winn-Dixie had Kroger's number of days' sales in inventory, how much additional cash flow would have been generated from the smaller inventory relative to its actual average inventory position? Round interim calculations to one decimal place and your final answer to the nearest million.
$ ?? Millions