Accounting

Anonymous
timer Asked: Mar 5th, 2018
account_balance_wallet $15

Question description

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:
    • Inventory turnover (Use cost of sales and inventories)
    • 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.

Tutor Answer

Proff_Holley
School: New York University

Hey buddy!Attached is the complete assignment.Please have a look at it and feel free to seek any further clarification. If
there's no further work to be done. I'd really appreciate if you could
leave a 5 star⭐ ⭐ ⭐ ⭐ ⭐ feedback for me on Studypool. This would be so helpful in
me securing further work and continue to tutor.Thanks. 😉

Name
Section
Date

(a)
Amazon.com

Inventory turnover:

cost of sales
2013 inventory
2014 inventory
Average inventory
inventory turnover

62,752
7,411
8,299
7,855
7.99

Days of inventory:

No of days
Inventory turnover
Days in inventory

365
8
46

Quick ratio

(b)

Current assets
current liabilities
Prepaid expenses
Quick ratio

31327
28,089
0.82

With the information got from Amazon days of inventory and Wal-Mart days of inventory. It is
clear that Wal-Mart inventory does not sit long at the company stores. As such, the management
team at Wal-Mart can use the information to make changes on how to move their inventory faster as well as
know how much to order on certain products. When compared to Amazon, their overlall costs are not so high.

Amazon inventory information can show that the company's products spend slighlty more time in their stores a
compared to Wal-Mart. Therefore, in order to bring down their days of inventory, the company
can avoid odering slow moving producsts and opt to stock faster moving products.
In addition, the management can also look for ways to move product faster, Maybe have more items on
sale and maybe doing inventory more that once a year. However, companies like Amazon and Wal-Mart
can do little changes to improve their performances since they rely mainly on trends that come for customers.

377

Chapter 6 Comparative Analysis Problem 2
Amazon.com, Inc. vs. Wal-Mart Stores, Inc.

Wal-Mart

cost of sales
2014 inventory
2015 inventory
Average inventory
inventory turnover

365,086
44,858
45,141
45,000
8.11

No of days
inventory turnover
Days in inventory

365
8
45

Current assets
current liabilities
Prepaid expenses
Quick ratio

63278
65,272
2,224
0.24

ory and W...

flag Report DMCA
Review

Anonymous
Outstanding Job!!!!

Similar Questions
Hot Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors