Question

The financial statements of ConAgra Foods, Inc.'s 2017 annual report disclose the following information. (in millions) 2017 2016 2015 Year-end inventories $934.2 $1,044.1 $1,642.6 Fiscal Year 2017 2016 Net sales $7,826.9 $8,664.1 Cost of goods sold 5,484.8 6,234.9 Net income 648.0 (665.9) Compute ConAgra's (a) inventory turnover and (b) the average days to sell inventory for 2017 and 2016. (Round inventory turnover to 1 decimal place, e.g. 7.6 and average days to sell inventory to 0 decimal places, e.g. 65.) 2017 2016 (a) Inventory turnover times times (b) Average days to sell inventory days days

Answer 1

(a) Inventory turnover= Cost of goods sold/Year end invento

Con Agra's al Inventooy tumorer cost of goods sold yead and inventory 2017 Inventory turnover = $ 5,484.8 Million - = 5.9 $934-2 Million 2016 Inventor toonaer = $ 6,234.9 Million $1,044.1 Million 6 (5.977 5] Average days to sell Lovestory 2017 = (1 5.9) x 365 - 61-86 =) 62 days 2016 = C1 = 6)x 366 Cleapyeas) = 61 days 2017 2016 (a) Inventory toonorer 5-9 times 6 times day days (b) Arenage days to ) 68 6a Tehotens thers 61 hotels sell eventory