Amazon.com, Inc.’s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions for accessing and using the complete annual reports of Amazon and Wal-Mart, including the notes to the financial statements, are also provided in Appendices D and E, respectively.

Instructions

(a) Based on the information contained in these financial statements, compute the following 2013 ratios for each company.

(1) Inventory turnover.

(2) Days in inventory.

(b) What conclusions concerning the management of the inventory can you draw from these data?