Assignment:
Purpose:
Evaluate the inventory section of two companies using basic comparative analysis, and to interpret the data to gain insight about the company's inventory management.
Steps :
Resources: Appendices D and E located in Financial Accounting: Tools for Business Decision Making
Note: While the data are not from the same year, inferences can be drawn regarding inventory management of the two companies.
Create a 1,050-word comparative analysis using the financial statements of Amazon.com, Inc. presented in Appendix D, and the financial statements for Wal-Mart Stores, Inc., presented in Appendix E, including the below:
Compute the 2014 values for Amazon.com and the 2015 values for Wal-Mart based on the information in the financial statements:
Inventory turnover (Use cost of sales and inventories)
Days of inventory
Conclusions concerning the management of the inventory can you draw from this data.