The financial statements of ConAgra Foods, Inc.\'s 2014 annual report disclose t

Question

The financial statements of ConAgra Foods, Inc.'s 2014 annual report disclose the following information (in millions) Year-end inventories 2014 2013 2012 $2,201 $2,077 $2,341 Fiscal Year 2014 2013 Net sales Cost of goods sold Net income $17,703 13,980 315 $15,427 11,864 786 Compute ConAgra's (a) inventory turnover and (b) the average days to sell inventory for 2014 and 2013. (Round inventory turnover to 1 decimal place, e.g. 7.6 and average days to sell inventory to 0 decimal places, e.g. 65.) 2014 2013 (a) Inventory turnover 6.5 times 56 times (b) Average days to sell inventory 5.4 days 68 days

Explanation / Answer

Calculate inventory turnover and average days to sell inventory :

2014 2013 a) Inventory turnover (cost of goods sold/average inventory) 13980/2139=6.5 times 11864/2209=5.4 times b) Average days to sell inventory 365/6.5 = 56 days 365/5.4=68 days

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.