Refer to the note related to inventories in CVS Corporation’s annual report in the Supplement to Chapter 1 to answer the following questions: What inventory method(s) does CVS use? If LIFO inventories had been valued at FIFO, why would there be no difference? Do you think many of the company’s inventories are valued at market? Few companies use the retail method, so why do you think CVS uses it? Compute and compare the inventory turnover and days’ inventory on hand for CVS for 2004 and 2003. Ending 2002 inventories were $4,018.6 million.

Comparison Case: CVS Versus Walgreens Inventory Efficiency