Question & Answer: Inventory Turnover and days' sales in inventory Kroger Sprouts Farmers Market, Inc., and Whole Foods Markets, Inc, are three grocery chains in t…..

Inventory Turnover and days’ sales in inventory Kroger Sprouts Farmers Market, Inc., and Whole Foods Markets, 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 (in millions) information: Kroger Sprouts Whole Foods Cost of merchandise sold Inventory, end of year Inventory, beginning of year a. & b. Determine the inventory turnover and the number of days’ sales in inventory (use 365 days and round to one decimal place) for the three companies. Round all interim calculations to one decimal place. For days’ sales in inventory, round final answers to the nearest day, and for inventory turnover, round to two decimal place. Company names Kroger Sprouts Whole Foods c. The inventory turnover ratios and days’ sales in inventory are inventory than Kroger and Sprouts. These results suggest that Kroger and Sprouts are d. If Kroger had Whole Foods 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. 59,973 500 441 $85,512 52,541 5,688 165 5,651 143 Inventory Turnover Days Sales in Inventory days days days ▼ for Kroger and Sprouts, Whole Foods has a inventory turnover and a days’ sales in efficient than Whole Foods in managing inventory. million