Question

AutoZone and O'Reilly are two competitors in the retail automotive parts industry.

	AutoZone	O'Reilly
Average 2015 Inventory	$3,280,868	$2,592,902
2015 Sales	10,187,340	7,966,674
2015 Cost of goods sold	4,860,309	3,804,031
Average 2014 Inventory	$3,000,557	$2,464,918
2014 Sales	9,475,313	7,216,081
2014 Cost of goods sold	4,540,406	3,507,180

Use the information above to compute the companies' gross profit margin and days inventory outstanding for both years.
Round answers to one decimal place (ex: 0.2345 = 23.5%).

Gross Profit Margin
	AutoZone	O'Reilly
2015	Answer	Answer
2014	Answer	Answer

Round to answers to one decimal place.

Days Inventory Outstanding
	AutoZone	O'Reilly
2015	Answer	Answer
2014	Answer	Answer

Computing Cash Conversion Cycle for Two Years
Winnebago Industries has the following metrics for 2015 and 2014.

Amounts in days	2015	2014
Days sales outstanding	25.5	19.1
Days inventory outstanding	47.1	48.9
Days payable outstanding	13.9	13.3

Compute the cash conversion cycle for both years.

Round answers to one decimal place.

Cash conversion cycle
2015	Answer
2014	Answer

Answer 1

The answer for above problem is explained below.