Question: Calculating the Inventory Turnover Ratio and Days to Sell Using the data in problem, calculate to one decimal place the inventory turnover ratio and days to sell for Dillard's. In a recent year, Macy's reported an inventory turnover ratio of 2.6. Which company's inventory turnover is faster?
Problem: Inferring Purchases Using the Cost of Goods Sold Equation Dillard's, Inc., operates 330 department stores located in 29 states primarily in the Southwest, Southeast, and Midwest. In its annual report for the year ended January 28, 2006, the company reported cost of goods sold of $5,014 million, ending inventory for the current year of $1,803 million, and ending inventory for the previous year of $1,733 million. Is it possible to develop a reasonable estimate of the merchandise purchases for the year? If so, prepare the estimate. If not, explain why.