ZutterBrief_CompletedProblem_Chapter_3.xlsx - Contents...

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Contents Problem 3-13 Problem 3-15 Problem 3-17 Problem 3-20 Problem 3-24
Problem 3-13 Foot Locker 2016 2015 2014 Cost of goods sold $4,907 $4,777 $4,372 Inventory 1,285 1,250 1,220 Finish Line Cost of goods sold $1,306 $1,237 $1,123 Inventory 377 343 304 DSW Cost of goods sold $1,852 $1,741 $1,629 Inventory 484 451 398 Inventory management. Three companies that compete in the footwear m shows inventory levels and cost of goods sold for each company for the 20 ratio for each company in each year and summarize your findings. All valu
Inventory turnover ratio 3.8 3.9 4.1
The first thing to notice is that all three companies have turnover ratios inventory a little less than 4 times per year. That is a typical inventory firms dramatically change their inventories with the seasons. Over the last three years, Foot Locker has either increased its inventory turnover ratios decline slightly in each year. Unless those companies are products, specifically a mix that one would expect to sell less frequently On a positive note for DSW, its turnover ratio is higher than or equal to
market are Foot Locker, Finish Line, and DSW. The table below 016, 2015, and 2014 fiscal years. Calculate the inventory turnover ues are in $ millions.
that are fairly similar, and all of three companies turn over there turnover for a retailer that specializes in clothing because these y or held it steady. Both Finish Line and DSW have seen their re deliberately pursuing a strategy of selling a different mix of y, then the decline in inventory turnover ratios is a worrying trend. o its competitors every year.
Problem 3-15 Procter & Gamble Colgate-Palmolive Sales $65,231 $15,195 Cost of goods sold 32,967 6,072 Receivables 4,729 1,411 Inventory 4,787 1,171 Total current assets 25,572 4,338 Total current liabilities 28,891 3,305 Total assets 117,033 12,123 a. b. Which company is in the position of having greatest liquidity? c. d. Quick ratio 0.72 0.96 0.51 Interpreting liquidity and activity ratios. The table below shows key financial data market: Procter & Gamble, Colgate-Palmolive, and Clorox. All dollar values are in th Calculate each of the following ratios for all three companies: current ratio, quick asset turnover. Would you say that the three companies exhibit similar performance or quite diffe do you think that might be? Which company has the most rapid inventory turnover? Which company appears t your answers to those questions a little surprising? If a company is best at inventor think that means? Solution a. Clorox Current ratio 0.89 1.31 0.76 Calculate each of the following ratios for all three companies: current ratio, quick asset turnover. Procter & Gamble Colgate- Palmolive
b. Which company is in the position of having greatest liquidity?

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