Target Corp. sells merchandise primarily through its retail stores. On the other hand, Amazon .com uses its

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 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.

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...