Amazon.com reported the following amounts in its financial statements (in millions): Required: 1. Determine the inventory turnover

Question:

Amazon.com reported the following amounts in its financial statements (in millions):

2015 2014 $107,000 $90,000 Net Sales Cost of Goods Sold Beginning Inventory 71,650 62,750 8,300 7,400 10,240 8,300 Endin

Required:

1. Determine the inventory turnover ratio and average days to sell inventory for 2015 and 2014. Round to one decimal place.

2. Comment on any changes in these measures and compare the inventory turnover at Amazon. com to inventory turnover at Alibaba Group, where inventory turned over 9.1 times during 2015 (40.1 days to sell).

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

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