The general merchandise retail industry has a number of segments represented by the following companies: Company Name
Question:
The general merchandise retail industry has a number of segments represented by the following companies:
Company Name Merchandise Concept
Costco Wholesale Corporation Membership warehouse
Walmart Stores, Inc Discount general merchandise
Nordstrom, Inc Fashion department store
For a recent year, the following cost of goods sold and beginning and ending inventories are provided from corporate annual reports (in millions) for these three companies:
Costco Walmart Nordstrom
Cost of goods sold $98,458 $365,086 $8,406
Inventories:
Beginning of year 7,894 44,858 1,531
End of year 8,456 45,141 1,733
A. Determine the inventory turnover ratio for all three companies. (Round all calculations to one decimal place.)
B. Determine the number of days’ sales in inventory for all three companies. (Use 365 days and round all calculations to one decimal place.)
C. Interpret these results based on each company’s merchandising concept.
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac