The financial statements of Amazon.com, Inc. are presented in Appendix D. Financial statements for Wal-Mart Stores, Inc.

Question:

The financial statements of Amazon.com, Inc. are presented in Appendix D. Financial statements for Wal-Mart Stores, Inc. are presented in Appendix E.

Instructions

(a) Based on the information in the financial statements, compute these 2014 values for each company.

(1) Inventory turnover. (Use cost of sales and inventories.)

(2) Days in inventory.

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

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...