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5/2/2012 10:56 PM
1. Enter the balances from the financial statements for each company. Income Statement (in millions) For the Fiscal Year Ended Cost of Sales Balance Sheet (in millions) As Of Fiscal Year End Merchandise Inventory Kohls 1/29/11 Kohls 1/29/11 J.C. Penney 1/29/11
Kohls 1/30/10
2. Calculate the turnover ratio for each company for fiscal year 2010. Round your answer to two decimal places. Kohls 1/29/11 Inventory Turnover 3. Use your rounded answer from (2) above to calculate the days in inventory for each company for fiscal year 2010. Round your answer to the nearest whole day. Kohls 1/29/11 Days in Inventory 4. Answer the following questions based on your review of the Inventory Ratios. QUESTIONS Which company appeared to manage inventory more effectively in fiscal year 2010? Place an X in the box under the Company name to indicate your choice. According to Hoovers Online Competitive Landscape, the median days in inventory for this industry for 2010 were 104 days. Indicate whether each company is performing better than average or worse than average for this industry. The turnover ratio for Kohls for fiscal year 2009 was 3.82 times per year. Indicate in the Kohls box whether liquidity regarding inventory improved or declined for Kohls in fiscal year 2010 as compared to fiscal year 2009. Kohls J.C. Penney J.C. Penney 1/29/11 J.C. Penney 1/29/11
Document1
5/2/2012 10:56 PM