Tiffany Co. is a high-end jewelry retailer, while Amazon.com uses its e-commerce services, features, and technologies to

Question:

Tiffany Co. is a high-end jewelry retailer, while Amazon.com uses its e-commerce services, features, and technologies to sell its products through the Internet. Recent balance sheet inventory disclosures for Tiffany and Amazon.com (in millions) are as follows:

Beginning-of-Period inventory End-of-Period Inventory $1,601 1,399 Tiffany Co. Amazon.com $1,242 1,200

The cost of merchandise sold reported by each company was as follows:

Tiffany Co. Amazon.com

Cost of merchandise sold $1,215 $14,896

a. Determine the inventory turnover and number of days’ sales in inventory for Tiffany and Amazon.com Round to two decimal places and nearest day.

b. 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...