Question

The following information relates to The Kruger Company for its 2015 and 2014 fiscal years, and Total Grocers Market, Inc. for its 2014 and 2013 fiscal years.

THE KRUGER COMPANY
Selected Financial Information (amounts in millions, except per share amounts)
	January 31, 2015				February 1, 2014
Total current assets	$	10,730			$	9,112
Merchandise inventory		9,848				8,207
Property and equipment, net of depreciation		46,336				17,435
Total assets		39,999				30,223
Total current liabilities		16,934				11,049
Total long-term liabilities		16,511				13,605
Total liabilities		33,445				24,654
Total shareholders’ equity		6,554				5,569
Revenue		130,627				101,548
Cost of goods sold		100,241				80,661
Gross profit		30,386				20,887
Operating income		3,778				2,814
Earnings from continuing operations before income tax expense		4,758				2,359
Income tax expense		1,085				776
Net earnings		2,102				1,584
Basic earnings per share	$	2.10			$	1.58

TOTAL GROCERS MARKET, INC.
Selected Financial Information (amounts in millions except per share data)
	September 28, 2014				September 29, 2013
Total current assets	$	2,218			$	2,046
Merchandise inventory		527				428
Property and equipment, net of depreciation		3,823				2,511
Total assets		6,044				5,732
Total current liabilities		1,502				1,125
Total long-term liabilities		807				593
Total liabilities		2,309				1,718
Total stockholders’ equity		3,735				4,014
Revenues		16,765				13,371
Cost of goods sold		10,937				8,581
Gross profit		5,828				4,790
Operating income		1,117				915
Earnings from continuing operations before income taxes		1,222				926
Income tax expense		438				356
Net earnings		692				572
Basic earnings per share	$	1.62			$	1.37

Required

Compute the following ratios for the Kruger company 2015 fiscal year and for the Total Grocers Market, Inc., 2014 fiscal year: (Do not round intermediate calculations. Round "Current ratio" to 2 decimal places and "Average days" to nearest whole number. Round all other answers to 1 decimal place.)

		KRUGER	TOTAL GROCERIES
1	Current Ratio
2	Average days to sell inventory (Use average invertory.)	___ days	___ days
3	Debt to assests ratio	____ %	___ %
4	Return on investments (Use average assests and use "earnings from continuing operations" rather than "net earnings.")	____ %	___ %
5	Gross margin percentage	____ %	___ %
6	Asset turnover (Use average assests)	____times	___ times
7	Return on sales (Use "earnings from continuing operations" rather than "net earnings")	____ %	___ %
8	Plant assests to long-term debt ratio

Answer 1

		KRUGER	TOTAL GROCERIES
1	Current Ratio = Current Assets/ Current Liabilities	0.63	1.48
2	Average days to sell inventory = average invertory/ Sales x 365	25	10	days
3	Debt to assests ratio = Total liabilities/ Total assets	84%	38%
4	Return on investments = Earnings from continuing operations/ Average Assets	13.6%	20.8%
5	Gross margin percentage = Gross profit/sales	23.3%	34.8%
6	Asset turnover = Sales/average assests	3.7	2.8	times
7	Return on sales = earnings from continuing operations/ Net sales	3.6%	7.3%
8	Plant assests to long-term debt ratio = Plant assets/ Total long term liabilities	2.8	4.7