Question: Target Corp. sells merchandise primarily through its retail stores. On the other hand, Amazon .com uses its e-commerce services, features, and technologies to sell its

Target Corp. sells merchandise primarily through its retail stores. On the other hand, Amazon .com uses its e-commerce services, features, and technologies to sell its products through the Internet. Recent balance sheet inventory disclosures for Target and Amazon.com (in millons) are as follows:

_________________________________ Target ________ Amazon.com

Cost of merchandise sold .................. $51,997 ............... $71,651

Inventory, end of year ....................... 8,601 .................. 10,243

Inventory, beginning of year ............... 8,282 .................... 8,299

a. Determine the inventory turnover for Target and Amazon.com. Round to two decimal places.

b. Determine the days' sales in inventory for Target and Amazon.com. Use 365 days and round to one decimal place.

c. Interpret your results.

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