Question: Use the following data from Wal-Mart to answer the questions below. 1. Calculate the inventory turnover and the days in inventory for Wal-Marts fiscal years

Use the following data from Wal-Mart to answer the questions below.

1. Calculate the inventory turnover and the days in inventory for Wal-Mart€™s fiscal years
2006 through 2009 (assume 365 days per year).
2. Based on your answer in part (1), what trends to do you see in Wal-Mart€™s inventories? Is Wal-Mart€™s inventory turnover increasing or decreasing? What factors do you think contribute to this trend? Is Wal-Mart€™s days in inventory increasing or decreasing? Why would Wal-Mart want to increase or decrease the size of its inventory?
3. Do you think Wal-Mart€™s inventory is a reasonable size? What are the costs to Wal-Mart of carrying too much inventory? Of carrying too little inventory? What, if any, recent developments can you find on how Wal-Mart manages itsinventory?

Fiscal Year 2007 2009 2008 2005 2006 $ 34,511 306,158 S 35,159 286,350 $ 33,667 263,979 S 31,910 237,649 $ 29,419 216,832 Inventories Cost of sales

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Real Company Analysis 1 Fiscal Year 2009 2008 2007 2006 2005 Cost of sales 306158 286350 263979 237649 216832 Beginning inventory 35159 33667 31910 29... View full answer

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