The purpose of this assignment is to 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.
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.
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
- 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.
Show work on Excel® spreadsheet and submit with analysis.