Wal-Mart's annual reports showed the following inventory and cost of goods sold data (in millions) for the years ended January 31, 2005 and 2004:

The following graphs were taken from EdgarScanâ„¢ Benchmarking Assistant for the past 10 years:

a. Using the preceding cost of goods sold and inventory data, compute the inventory turnover for 2005. Does it agree with the amount shown in the preceding graph? (Hint: The graph is based upon using ending rather than average inventory.)
b. Using the preceding cost of goods sold and inventory data, compute the days' sales in inventory for 2005. Does it agree with the amount shown in the preceding graph?
c. Comment on the precedinggraphs.

Transcribed Image Text:

2005 Cost of goods sold Inventory $219,793 29,447 2004 $198,747 26,612 Compani Grapt 1995-2004 Inventory Tunover X 10 Graphs 의12004 의10 의 Vevr 50 1996-2004 Days Suppy in Inventory DSI