The purpose of this assignment is to evaluate
the inventory section of two companies using basic comparative analysis, and to
interpret the data to gain insight about the company’s inventory management.
Assignment
Steps
Resources:Financial Accounting: Tools for Business
Decision Making
Writea 200-word comparative analysis using the
financial statements of Amazon.com, Inc. presented in Appendix D, and the
financial statements for Wal-Mart Stores, Inc., presented in Appendix E,
including the following:
·
Compute these 2014
values for each company based on the information in the financial statements:
o
Inventory turnover
(Use cost of sales and inventories)
o
Days of inventory
·
Conclusions concerning
the management of the inventory can you draw from this data.
