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Hello, Please help with this finance problem for comparing Costco to Walmart using below financials 1) Compare Walmart's inventory and receivables turnover ratios for the

Hello, Please help with this finance problem for comparing Costco to Walmart using below financials

1) Compare Walmart's inventory and receivables turnover ratios for the most recent year to Costco's

1a) Compute the inventory turnover ratio as cost of revenue/inventory

1b) Compute the receivable turnover ratio as total revenueet receivables

2) Now assume Walmart matches Costco's inventory and receivables turnover ratios without changing its payable days

2a) How much would Walmart's free-cash flow change relative to its current situation?

2b) What would Walmart's CCC be in this case?

3) What are your impressions regarding Walmart's working capital management based on this preliminary analysis? Discuss any advantages and disadvantages of attempting to match Costco's cash conversion cycle.

(NOTE: Some of Images may not have most current year, but please use numbers displayed. If images are not clear, please use your screen display settings to ZOOM into image. Chegg support says this should work)

COSTCO

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WALMART

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Values in Millions (Except for per share items) 2015 2016 2017 2018 Period End Date 09/02/2018 08/30/2015 08/28/2016 09/03/2017 Stmt Source Annual Annual Annual Annual 08/30/2015 09/02/2018 Stmt Source Date 08/28/2016 09/03/2017 Stmt Update Type Currency Code Total Revenue 116,199.0 118,719.0 129,025.0 141,576.0 Cost of Revenue 101,065.0 102,901.0 111,882.0 123,152.0 17,143.0 Gross Profit 15,134.0 15,818.0 18,424.0 12,146.0 Selling,General and Administrative 11,510.0 13,032.0 13,944.0 Research and Development Special Income/Charges 112,575.0 137,096.0 Operating Expenses 115,047.0 124,914.0 Operating Income 3,624.0 3,672.0 4,111.0 4,480.0 Net Interest Income 7,0 11.0 17.0 23.0 Other Income/Expense, Net 7.0 11.0 17.0 23.0 3,604.0 3,619.0 4,442.0 Pre-Tax Income 4,039.0 Provision for Income Tax Net Income 2,377.0 2,350.0 2,679.0 3,134.0 Dividend Per Share 1.47 1.65 1.85 2.07 33.1576 Tax Rate 34.3465 32.8052 28.0054 Basic EPS 5.41 5.36 6.11 7.15 Diluted EPS 5.37 5.33 6.08 7.14 Values in Millions (Except for per share items) 2015 2016 2017 2018 09/03/2017 09/02/2018 Period End Date 08/30/2015 08/28/2016 Stmt Source 10-K 10-K 10-K 10-K 09/02/2018 Stmt Source Date 08/30/2015 08/28/2016 09/03/2017 Stmt Update Type Currency Code USD USD USD USD Assets Cash, Equiv and Short Term Investments 1,69.0 Receivables 1,224.0 1,252.0 1,432.0 8,908.0 Inventories 8,969.0 9,834.0 11,040.0 Deferred Current Assets Deferred Taxes, Current Assets Other Current Assets Total Current Assets 16,779.0 15,218.0 17,317.0 20,289.0 Net Property,Plant, and Equipment 15,401.0 17,043.0 18,161.0 19,681.0 Goodwill and Other Intangible Assets Investments and Advances 0.0 0.0 0.0 0.0 Other Non-Current Assets Total Non-Current Assets 16,238.0 17,945.0 19,030.0 20,541.0 36,347.0 Total Assets 33,017.0 33,163.0 40,830.0 Liabilities and Shareholders' Equity Payables 9,011.0 7,612.0 9,608.0 11,237.0 Accrued Expenses, Current 5,392.0 5,162.0 5,675.0 4,550.0 Current Debt 1,293.0 1,110.0 86.0 97.0 Deferred Liabilities,Current Other Current Liabilities 19,926.0 Total Current Liabilities 16,539.0 15,575.0 17,495.0 LT Debt and Capital Lease Obligation Deferred Liabilities, Non current 1,193.0 Other Non-Current Liabilities 831.0 1,200.0 924.0 22,400.0 21,084.0 Total Non-Current Liabilities and MI 25,569.0 28,031.0 22,174.0 20,831.0 Total Liabilities 25,268.0 27,727.0 Capital Stock 2.0 2.0 4.0 4.0 Retained Earnings 6,518.0 7,686.0 5,988.0 7,887.0 Accum Gains/ Losses Not Affecting RE Total Equity 10,617.0 12,079.0 10,778.0 12,799.0 Total Liabilities and Equity 33,017.0 33,163.0 36,347.0 40,830.0 437.2 438.2 Ordinary Shares Outstanding 438.0 437.5 Values in Millions (Except for per share items) 2016 2017 2018 2019 Period End Date 01/31/2016 01/31/2017 01/31/2018 01/31/2019 Stmt Source Annual Annual Annual Annual 01/31/2016 01/31/2019 Stmt Source Date 01/31/2017 01/31/2018 Stmt Update Type Currency Code 514,405.0 Total Revenue 482,130.0 485,873.0 500,343.0 Cost of Revenue 360,984.0 373,396.0 361,256.0 385,301.0 121,146.0 126,947.0 Gross Profit 124,617.0 129,104.0 97,041.0 106,510.0 Selling,General and Administrative 101,853.0 107,147.0 Research and Development Special Income/Charges -4,800.0 -3,136.0 Operating Expenses 458,025.0 463,109.0 483,042.0 497,248.0 Operating Income 24,105.0 22,764.0 17,301.0 17,157.0 Net Interest Income Other Income/Expense,Net 20,497.0 11,460.0 Pre-Tax Income 21,638.0 15,123.0 Provision for Income Tax 14,694.0 Net Income 13,643.0 9,862.0 6,670.0 Dividend Per Share 1.96 2.00 2.04 2.08 33.6737 Tax Rate 30.3078 30.2678 31.7397 Basic EPS 4.58 4,40 3.29 2.28 Diluted EPS 4.57 4.38 3.21 2.41 Values in Millions (Except for per share items) 2016 2017 2018 2019 Period End Date 01/31/2016 01/31/2017 01/31/2018 01/31/2019 Stmt Source 10-K 10-K 10-K 10-K 01/31/2017 Stmt Source Date 01/31/2016 01/31/2018 01/31/2019 Stmt Update Type Currency Code USD USD USD USD Assets Cash, Equiv and Short Term Investments Receivables 5,624.0 5,835.0 5,614.0 6,283.0 Inventories 44,469.0 43,046.0 43,783.0 44,269.0 Deferred Current Assets Deferred Taxes,Current Assets Other Current Assets Total Current Assets 60,239.0 57,689.0 59,664.0 61,897.0 Net Property,Plant,and Equipment 116,516.0 114,178.0 114,818.0 111,395.0 Goodwill and Other Intangible Assets 16,695.0 17,037.0 18,242.0 31,181.0 Investments and Advances 0.0 0.0 0.0 0.0 Other Non-Current Assets 157,398.0 141,136.0 Total Non-Current Assets 139,342.0 144,858.0 199,581.0 198,825.0 Total Assets 204,522.0 219,295.0 Liabilities and Shareholders' Equity Payables 39,008.0 42,354.0 46,737.0 47,488.0 Accrued Expenses,Current 19,607.0 20,654.0 22,122.0 22,159.0 Current Debt 3,920.0 6,004.0 9,662.0 7,830.0 Deferred Liabilities,Current Other Current Liabilities 64,619.0 66,928.0 78,521.0 Total Current Liabilities 77,477.0 LT Debt and Capital Lease Obligation 8,168.0 Deferred Liabilities, Non current 7,321.0 8,714.0 11,553.0 Other Non-Current Liabilities 3,839.0 4,227.0 4,291.0 Total Non-Current Liabilities and MI 119,035.0 121,027.0 126,653.0 146,799.0 Total Liabilities 115,970.0 118,290.0 123,700.0 139,661.0 Capital Stock 317.0 305.0 295.0 288.0 Retained Earnings 85,107.0 90,021.0 89,354.0 80,785.0 Accum Gains/ Losses Not Affecting RE Total Equity 80,546.0 72,496.0 77,798.0 77,869.0 Total Liabilities and Equity 199,581.0 204,522.0 198,825.0 219,295.0 Ordinary Shares Outstanding 3,162.0 3,048.0 2,952.0 2,878.0

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