Tiffany Co. is a high-end jewellery retailer, whereas Amazon.com is an online retailer that uses e-commerce services,

Question:

Tiffany Co. is a high-end jewellery retailer, whereas Amazon.com is an online retailer that uses e-commerce services, features, and technologies to sell its products through the Internet. inventory disclosures for Tiffany and Amazon.com (in thousands) are as follows:

The cost of goods sold reported by each company was as follows:

a. Determine the inventory turnover ratios and days€™ sales in inventory for Tiffany and Amazon.com. Round to two decimal places.
b. Interpret your results. Consider how their different business models are reflected in these ratios.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...