Walgreens boots alliance’s sales, cost of goods sold, and gross profit
the following information was summarized from the consolidated balance sheets of walgreens boots alliance, inc. and subsidiaries (the company created with the combination of walgreens and boots alliance) as of august 31, 2015 and 2014 and the consolidated statements of earnings for the years ended august 31, 2015 and 2014. all amounts are from walgreens boots alliance’s 2015 form 10-k.
(millions of dollars) 2015 2014
accounts receivable, net $6,849 3,218
cost of sales 76,520 54,823
inventories 8,678 6,076
net sales 103,444 76,392
1. calculate the gross profit ratios for walgreens boots alliance for 2015 and 2014 if required, round the percentage to one decimal place.
walgreen's 2015 gross profit ratio: %
walgreen's 2014 gross profit ratio: %

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept, the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year. to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51