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Purpose of Assignment

The purpose of this assignment is to evaluate the inventory section of two companies using basic comparative analysis, and to interpret the data to gain insight about the company's inventory management.

Assignment Steps

Resources:Appendices D and E located inFinancial Accounting: Tools for Business Decision Making

Evaluate the inventory and inventory related accounts section of the financial statements for Amazon.com, Inc. presented in Appendix D, and the financial statements for Wal-Mart Stores, Inc., presented in Appendix E. Using the provided Excel spreadsheet, compute the following ratios for 2014 for each company based on the information in the financial statements:

• Inventory turnover (Use cost of sales and inventories)
• Days of inventory

Writea 1,050-word comparative analysis discussing your conclusions concerning the management of the inventory based on your review of the financial statement data.

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