Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Target Corporation (TGT) is one of the largest value-priced general merchandisers operating in the United States. Target sells through nearly 1,800 brick-and-mortar stores and through the Internet. Amazon and Target compete for customers across a wide variety of products, including media, general merchandise, apparel, and consumer electronics. Cost of goods sold and inventory information from a recent annual report are provided for both companies as follows (in millions): Amazon Target Cost of goods sold $272,344 $74,963 Inventories: Beginning of year 23,795 10,653 End of year 32,640 13,902 a. Compute the inventory turnover for both companies. Round your answers to one decimal place. Inventory Turnover Amazon.com 9.7 Target 6.1 b. Compute the days' sales in inventory for both companies. Assume a 365-day year. If required, round all computations to one decimal place and use in subsequent calculations. Round final answers to one decimal place. Days' Sales in Inventory Amazon.com X days Target 59.8 V days c. Which company has the better inventory efficiency? Amazon.com d. What might explain the difference in inventory efficiency between the two companies? Check My Work Previous Next