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 Inventory, end of year Inventory, beginning of year $51,997 $71,651 8,601 10,243 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.
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 Inventory, end of year Inventory, beginning of year $51,997 $71,651 8,601 10,243 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.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.12E: Inventory analysis Costco Wholesale Corporation (COST) and Wal-Mart Stores Inc. (WMT) compete...
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