barelracingrl15
Oct 25, 2011, 09:43 AM
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:
Merchandise Inventory
End of Year (in millions) Beginning of Year (in millions)
Kroger $4,859 $4,855
Safeway 2,591 2,798
Winn-Dixie 665 649
The cost of goods sold for each company were:
Cost of Goods Sold (in millions)
Kroger $58,564
Safeway 31,589
Winn-Dixie 5,269
C. If Winn-Dixie had Kroger's number of days' sales in inventory, how much additional
Cash flow (round to nearest million) would have been generated from the smaller
Inventory relative to its actual average inventory position?
Merchandise Inventory
End of Year (in millions) Beginning of Year (in millions)
Kroger $4,859 $4,855
Safeway 2,591 2,798
Winn-Dixie 665 649
The cost of goods sold for each company were:
Cost of Goods Sold (in millions)
Kroger $58,564
Safeway 31,589
Winn-Dixie 5,269
C. If Winn-Dixie had Kroger's number of days' sales in inventory, how much additional
Cash flow (round to nearest million) would have been generated from the smaller
Inventory relative to its actual average inventory position?