Comparative Analysis Problem

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Comparative Analysis Problem: Amazon.com, Inc. vs. Wal-Mart Stores, Inc.

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Comparative Analysis Problem: Amazon.com, Inc. vs. WalMart Stores, Inc. Purpose of Assignment 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: Appendices D and E located in Financial Accounting: Tools for Business Decision Making Note: While the data are not from the same year, inferences can be drawn regarding inventory management of the two companies. Write a 1,050-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 the 2014 values for Amazon.com and the 2015 values for Wal-Mart 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. Show work on Excel® spreadsheet and submit with analysis. Click the Assignment Files tab to submit your assignment. Week 4 Learning Team Collaborative Discussion: Comparative Analysis Problem: Amazon.com, Inc. vs. WalMart Stores, Inc. Prepare for Week 4 Individual Assignment: Comparative Analysis Problem: Amazon.com, Inc. vs. Wal-Mart Stores, Inc. Discuss with your collaborative group how to complete a Comparative Analysis Problem: Amazon.com, Inc. vs. Wal-Mart Stores. Write a 175-word individual response. Name Section Date Chapter 6 Comparative Analysis Problem 2 Amazon.com, Inc. vs. Wal-Mart Stores, Inc. (a) Amazon.com Inventory turnover: Days in inventory: (b) 377 Wal-Mart Comparative Analysis Problem: Amazon.com, Inc. vs. Wal-Mart Stores, Inc. Grading Guide ACC/290 Version 7 Principles of Accounting I Copyright Copyright © 2017, 2015, 2014, 2013, 2012, 2011 by University of Phoenix. All rights reserved. University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft®, Windows®, and Windows NT® are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix® editorial standards and practices. Comparative Analysis Problem: Amazon.com, Inc. vs. Wal-Mart Stores, Inc. Grading Guide ACC/290 Version 7 Individual Assignment: Comparative Analysis Problem: Amazon.com, Inc. vs. Wal-Mart Stores, Inc. Purpose of Assignment 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. Resources Required Financial Accounting: Tools for Business Decision Making. Note: While the data are not from the same year, inferences can be drawn regarding inventory management of the two companies. Grading Guide Content Met Partially Met Not Met Total Available Total Earned 6 #/6 Partially Met Not Met Comments: Write a 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. Included the 2014 values for Amazon based on the following: • Inventory turnover (Use cost of sales and inventories) • Days of inventory Included the 2015 values for Walmart based on the following: • Inventory turnover (Use cost of sales and inventories) • Days of inventory Included conclusions concerning the management of the inventory. The analysis was 1,050 words in length. Writing Guidelines Met Comments: 2 Comparative Analysis Problem: Amazon.com, Inc. vs. Wal-Mart Stores, Inc. Grading Guide ACC/290 Version 7 Writing Guidelines Met Partially Met Not Met Total Available Total Earned 3 #/3 9 #/9 The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements. Intellectual property is recognized with in-text citations and a reference page. Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper. Sentences are complete, clear, and concise. Rules of grammar and usage are followed including spelling and punctuation. Assignment Total Additional comments: # Comments: 3 0010213405 6789 8 78877878787  887 !87 ./01234567859:;?@AABCD
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To begin the comparison of the inventory management system of Walmart and Amazon, it is important to look at the basic numbers first – the average inventories of these two companies. For 2014, Walmart had an average inventory of 44,999 million dollars while Amazon had 7,855 million dollars. In comparison, the inventory of Walmart is 5.73 times greater than that of Amazon. This is something that could be expected since it is a common knowledge that unlike Walmart, Amazon does not rely on physical stores in order to sell items. Filling up Walmart’s physical stores with inventories really is evident in this comparison. This signifies that Walmart has more to think about in terms of inventories compared to Amazon. Aside from this, it can also be implied that the power of internet in providing a ‘virtual’ choice for customers significantly reduces the amount of inventory that a company has to manage. As one expects it to be, the amount of sales for the two companies could also differ on a magnitude close to the difference in magnitude of their inventories. Taking a look at it, the net product sales of Amazon in 2014 is 70,080 million dollars while Walmart had a net product sales of 482,225 million dollars. These two qua...


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