Comparative Analysis Problem

User Generated

Mhyh06

Business Finance

Description


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.

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:(it doesn’t have to be 1050 words, words are based on however it answers the questions )

  • 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.

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Explanation & Answer

Attached.

Description
Office space
Office space
Fulfillment and data
Fulfillment and data
Total

Appedix D
Leased square in thousands
Owned square in thousands
8454
3693
7314
0
97215
2237
59175
1257
172158
7187

Location
North America
International
North America
International


Appedix E
Operating result
2015 figures($)
Total revenues
485873
Net sales
481317
Operating income
22764
Income from operation
13643
continuing operations
438
Total
1004035


Comparative Analysis
Amazon.com, Inc., is a company business as Amazon is an American electronic
commerce and cloud computing company based in Seattle, Washington that was founded
by Jeff Bezos on July 5, 1994. The tech giant is the largest Internet retailer in the world as
measured by revenue and market capitalization, and second largest after Alibaba Group in
terms of total sales. The amazon.com website started as an online bookstore and later
diversified to
sell video downloads/streaming, MP3 downloads/streaming, audiobookdownloads/streaming,
software, video games, electronics, apparel, furniture, food, toys, and jewellery. The
company also produces consumer electronics—Kindle e-readers, Fire tablets, Fire TV,
and Echo—and is the world's largest provider of infrastructure services (IaaS and PaaS).
Amazon also sells certain low-end products under its in-house brand Amazon Basics.
Amazon has separate retail websites for the United States, the United Kingdom and Ireland,...


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