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Calculating Gross Profit Margin and Inventory Turnover The following table presents sales revenue, cost of goods...

Calculating Gross Profit Margin and Inventory Turnover
The following table presents sales revenue, cost of goods sold, and inventory amounts for three retailers of fine jewelry, Tiffany & Co., Zale Corporation, and Blue Nile, Inc. (an Internet retailer).

($ millions) 2013 2012
Tiffany & Co.
Revenues $4,585 $4,017
Cost of goods sold 1,776 1,674
Inventory 2,489 2,347
Zale Corporation
Revenues $1,973 $1,910
Cost of goods sold 989 949
Inventory 823 769
Blue Nile, Inc.
Revenues $505 $443
Cost of goods sold 451 368
Inventory 90 60


a. Compute the gross profit margin (GPM) for each of these companies for 2013 and 2012.
Note: Round GPM answers to one decimal place (ex: 0.2345 = 23.5%).

Tiffany Zale Blue Nile
2013 2012 2013 2012 2013 2012
Gross profit Answer Answer Answer Answer Answer Answer
Gross profit margin (GPM) Answer

%

 Answer % Answer % Answer % Answer % Answer %


b. Compute the inventory turnover ratio and the average inventory days outstanding for 2013 for each company.

Do not round until your final answer.

Round inventory turnover to one decimal place. Round average inventory days outstanding to nearest whole number.

Tiffany Zale Blue Nile
Inventory turnover Answer Answer Answer
Avg. inventory days outstanding

Answer Answer Answer

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jeff jeffy answered 2 years ago
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