Continuing Company Analysis-Amazan: Inventory turnover and Number of days sales in inventory Amazon.com, Inc. is one of the largest letemet retailers in the word. Target Corporation is one of the largest value-priced general merchandisers operating in the United States. Target sets 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 beth companies as follows (in millions) Amazon Target Cost of goods sold $62.752 $51,300 Inventories Beginning of year 7,411 7,933 8.299 8,766 End of year a. Compute the inventory turnover for both companies. Round all calculations to one decimal place Amazon.com Tanger Inventory Turnover b. Compute the number of days' sales in inventory for both companies. Use the values determined in Pert a and assume a 365-day year Round all calculations to one decimal place Amazon.com Target Number of Days Sales in Inventory days deys which campany has the better inventory efficiency? Amazon.com Check My Work Masignment Score: 44.00% Previous Next Chapter 6 - Homework Assignment eBook Amazon.com Target Inventory Turnover b. Compute the number of days' sales in inventory for both companies. Use the values determined in Part a and assume a 365-day year. Round all calculations to one decimal place Amazon.com Target Number of Days" Sales in Inventory days days c. Which company has the better inventory efficiency? Amazon.com 4. What might explain the difference in inventory efficiency between the two companies 1. The sales team of Amazon is more efficient than the sales team of Target Corporation 2. Target's merchandising strategy requires a more significant investment in inventory than Amazon's 3. The profit margin of Amazon is much higher than that of Target Corporation 4. Amazon is a much larger company than Target and has the resources to handle its funds in an efficient manner F Check My Work Paraty conect Check My Work Previous Next