Exercise 9-23 The financial statements of ConAgra Foods, Inc.\'s 2014 annual rep

Question

Exercise 9-23 The financial statements of ConAgra Foods, Inc.'s 2014 annual report disclose the following information. (in millions) 2014 2013 2012 Year-end inventories $2,201 $2,077 $2,341 Fiscal Year 2014 2013 Net sales Cost of goods sold Net income $17,703 13,980 315 $15,427 11,864 786 Compute ConAgra's (a) inventory turnover and (b) the average days to sell inventory for 2014 and 2013. (Round inventory turnover to 1 decimal place, e.g. 7.6 and average days to sell inventory to o decimal places, e.g. 65.) 2014 2013 (a) Inventory turnover times times (b) Average days to sell inventory days days LINK TO TEXT

Explanation / Answer

Inventory turnover = Cogs/Average inventory

Inventory turnover2014 = 13980/[(2201+2077)/2]

                                          = 13980/2139

                                           = 6.54

Inventory turnover2013 = 11864/[(2077+2341)/2]

                                          = 11864/2209

                                          = 5.37

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