Inventory Turnover and days’ sales in inventory

Kracker Corp., Foodstuff, Inc., and Winston Stores, Inc. arethree grocery chains in the United States. Inventory management isan important aspect of the grocery retail business. Recent balancesheets for these three companies indicated the followingmerchandise inventory (in millions) information:

	Kracker Corp.	Foodstuff Inc.	Winston Stores
Cost of merchandise sold	$32,850.0	$33,215.0	$35,040.0
Inventory, beginning of year	1,908.9	2,042.0	1,483.2
Inventory, end of year	1,871.1	1,962.0	1,396.8

a. & b. Determine the inventory turnoverand the number of days’ sales in inventory (use 365 days and roundto the nearest day) for the three companies. Round allinterim calculations to one decimal place. For days' sales ininventory, round final answers to the nearest day, and forinventory turnover, round to one decimal place.

Company names	Inventory Turnover	Days' Sales in Inventory
Kracker	fill in the blank 1	fill in the blank 2 days
Foodstuff	fill in the blank 3	fill in the blank 4 days
Winston Stores	fill in the blank 5	fill in the blank 6 days

c. The inventory turnover ratios and days’sales in inventory are   for Kracker and Foodstuff.Winston Stores has a   inventory turnover anda   days’ sales in inventory than Kracker andFoodstuff. These results suggest that Kracker and Foodstuffare   efficient than Winston Stores in managinginventory.

d. If Kracker had Winston Stores’ days’ salesin inventory, how much additional cash flow would have beengenerated from the smaller inventory relative to its actual averageinventory position? Round interim calculations to onedecimal place and your final answer to the nearestmillion.
$fill in the blank 11 million