(Solved): P6-36. Evaluating Turnover and Nontraditional Efficiency Ratios Across Industries The following i ...

P6-36. Evaluating Turnover and Nontraditional Efficiency Ratios Across Industries The following information is taken from publicly traded retailers. The data come from the balance sheet, income statement, and Item 2 on the companies' Form 10-K filings. Use the information to answer the requirements. S millions Autozone... $ 11,221 $ 4,902 $ 3,913 Costco...... 141,576 121,715 10,437 71,043 13,337 Home Depot Lowe's... 108,203 71,309 48,396 11,977 O'Reilly. 4,237 3,102 Walmart.. 374,623 44,026 .….... Average Revenue COGS Inventory ... 9,536 511,729 Retail SQ Footage (000s) 41,066 110,700 237,700 209,000 38,455 1,129,000 Inventories, in millions Finished goods... Work in process. Raw materials... Supplies... Total.. Adjustment of inventories to a LIFO basis... Total inventories..... # of Stores 6,202 762 Required a. Compute the days inventory outstanding (DIO) for each company. b. Compute the gross profit margin for each company. c. Compare the DIO and gross profit margin for each of the three combinations of competitors. What do we observe? How are the two ratios related? 2,287 2,015 5,219 11,361 d. Compute the following two nontraditional efficiency metrics: Revenue per square foot and Revenue per store. What do we observe? Mar. 31, 2019 $5,703 2,239 940 891 $9,773 (265) $9,508 P6-37. Analyzing Inventories with Quarterly Data and LIFO Liquidation The inventory footnote from The Dow Chemical Company's first quarter 2019 SEC report follows. The company also reports cost of goods sold for Q1 of 2019 of $10,707 million. Dec. 31, 2018 $5,640 2,214 941 880 $9,675 (415) $9,260 LO H LO D