The January 28, 2017 (fiscal year 2016) financial statements of Caleres, Inc. reported the following information...

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Finance

The January 28, 2017 (fiscal year 2016) financial statements ofCaleres, Inc. reported the following information (inthousands):
Caleres, Inc.
2016
2015
Cost of sales
$1,517,397
$1,529,527
Inventories, net
Â Â Â 585,764
Â Â Â 546,745
LIFO reserve
Â Â Â Â Â Â Â 4,345
Â Â Â Â Â Â Â 4,094
The footnotes to the 2016 financial statements of SkechersU.S.A., Inc. reported that the company uses the FIFOmethod of accounting for inventories. Financial statementsreported the following (in thousands):
Skechers U.S.A., Inc.
2016
2015
Cost of sales
$1,928,715
$1,723,315
Inventories, net
700,515
620,247
a.Â Â Â Â Â Â Calculate the twocompaniesâ€™ days-inventory-outstanding ratios for 2016 to allow fora comparison.
b. Which company is more efficient with its inventory?
c. Suggest two ways that Calares might improve thedays-inventory-outstanding.

Answer & Explanation Solved by verified expert

4.4 Ratings (978 Votes)

Days inventory outstand ratio Inventory cost of good sold days in a year In 2016 For Caleres Inc Inventory 587764 COGS 1517397 Days inventory outstanding 5877641517397 365 14138 or 141 days In 2016 See Answer

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Caleres, Inc.	2016	2015
Cost of sales	$1,517,397	$1,529,527
Inventories, net	Â Â Â 585,764	Â Â Â 546,745
LIFO reserve	Â Â Â Â Â Â Â 4,345	Â Â Â Â Â Â Â 4,094

Skechers U.S.A., Inc.	2016	2015
Cost of sales	$1,928,715	$1,723,315
Inventories, net	700,515	620,247