Wal-Mart Stores, Inc., and Target Corporation reported the following in their financial reports: a. Compute the 2017
Question:
Wal-Mart Stores, Inc., and Target Corporation reported the following in their financial reports:
a. Compute the 2017 and 2016 inventory turnovers for each of these two retailers.
b. Discuss any changes that are evident in inventory turnover across years and companies from part a.
c. Describe ways in which a retailer can improve its inventory turnover. Are there ways to increase inventory turnover that are not beneficial to the company's long-term interests?
Wal-Mart Target (S billions) Fiscal Year Sales COGS Inventory Sales COGS Inventory 2017..... 2016... $51.1 49.1 $496 $373 $43.8 $8.66 S71.9 69.5 481 361 43.0 8.31 2015 479 361 44.5 73.8 52.2 8.60
Step by Step Answer:
a b WalMarts inventory turnover rate is higher than Targets There can be several reasons for this Wa...View the full answer
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Business questions
-
Two online magazine companies reported the following in their financial statements: Required: 1. Compute the 2015 ROE for each company (express ROE as a percentage rounded to one decimal place)....
-
Compute cost of goods sold for each of these two companies for the year ended December 31,2011. Century New Homes Merchandising $250,000 460,000 ng Beginning inventory Merchandise $500,000 Finished...
-
Compute cost of goods sold for each of these two companies for the year ended December 31, 2015. Precision Manufacturing Unimart A,00) 00,000 4 Merchandise $450,000 6 Cost of purchases 7 Cost of...
-
When a cosmetic manufacturer tests the market to determine how many women will buy eyeliner that has been tested for safety without subjecting animals to injury, is it involved in a descriptive...
-
Consider the following equation of state, expressed in terms of reduced pressure and temperature: Z = 1 + Pr/14 Tr (1 6/Tr2 ) What does this equation predict for entropy departure from the ideal gas...
-
In an on-line computer application: a. The system provides for a response to the user. b. Records may be updated immediately as transactions occur. c. Report terminals are usually an integral part of...
-
The 2015 annual report of The Procter & Gamble Company (P&G) is available at www.pginvestor.com. After reviewing P&Gs annual report, respond to the following questions: a. Prepare common-size income...
-
Frame Place manufactures picture frames. Suppose the companys May records include the items described below. What is Frame Places total manufacturing overhead cost in May? Oil for manufacturing...
-
FIN3250 Term Project Instruction 1) Use CSU Caf's Income Statement, Balance Sheet and Cash Flow Statement for the last three fiscal Years and recreate a 3-statement financial statements. *Input P&L...
-
LIFO/FIFO/Average Cost under Periodic and Perpetual Inventory Systems Spelling Company had the following transactions in connection with their inventory account during the month of August: PURCHASES...
-
Penno Company reported ending inventories of $23,560,000 in 2020 and $25,790,000 in 2019. Cost of goods sold totaled $142,790,000 in 2020. a. Prepare the journal entry to record cost of goods sold....
-
Bartov Corporation reports the following beginning inventory and purchases for 2020: Bartov sells 600 of these units in 2020. Compute its cost of goods sold for 2020 and the ending inventory reported...
-
Let X and Y represent the number of Dell and HP laptop computers, respectively, sold per month from online sites. The file S04_28.xlsx contains the probabilities of various combinations of monthly...
-
You are approached by the sales manager to prepare a detailed report to him based on your findings as follows: ) Explain to the sales manager on ANY THREE (3) managerial uses of cost-volume- profit...
-
Describe How A Marketer Could Develop Differing Marketing Strategies To Target Your Personal Use Of Goods Or Services. Provide A Real-World Example Of A Marketer Who Does This. Include Links To...
-
Last year, you purchased 500 shares of Analog Devices, Inc. stock for $11.16 a share. You have received a total of $120 in dividends and $7,190 from selling the shares. What is your capital gains...
-
A company had a cash balance of $3,500 at the beginning of the month. The company does not make any sales on credit. The company accepts cash and credit cards.Assume that 80% of its sales are credit...
-
If prime costs has a total amount of 785,400, what would be the amount of the manufacturing overhead if it consists 30% of the total manufacturing costs?
-
Use the departure delay times for Flight 19 and test for normality using a normal quantile plot. The values are departure delay times (minutes) for American Airlines flights from New York to Los...
-
Anna, a high school counselor, devised a program that integrates classroom learning with vocational training to help adolescents at risk for school dropouts stay in school and transition to work...
-
All businesses are involved in three types of activitiesfinancing, investing, and operating. Listed below are the names and descriptions of companies in several different industries. Abitibi...
-
The Fair View Golf & Country Club details the following accounts in its financial statements. Instructions(a) Classify each of the above accounts as an asset (A), liability (L), stockholders?? equity...
-
This information relates to Alexis Co. for the year 2012. Retained earnings, January 1, 2012 ....... $67,000 Advertising expense ............. 1,800 Dividends paid during 2012 .......... 6,000 Rent...
-
The indirect method starts by using __________ and making a series of adjustments to obtain __________. a.) net loss, gross profit b.) net income, net cash c.) net income, gross loss d.) gross...
-
It is a fact that rank(A A) = rank A; here's one way to see that. We've already seen in part (b) that rank(A A) rank A. Suppose that rank(A A) were strictly less than rank A. What would that tell us...
-
True of False. _____ In the US, the capital account surplus is roughly equal to the current account deficit in magnitude _____Americans buying European T-bills shows up on both US and European...
Study smarter with the SolutionInn App