Inventory Analysis Costco Wholesale Corporation (COST) and Wal-Mart Stores Inc. (WMT) compete against each other in general merchandise retailing, gas stations, pharmacies, and optical centers. Below is selected financial information for both companies from a recent year's financial statements in millions): Costco Wal-Mart Sales $116,199 $485,651 Cost of goods sold 101,065 365,086 Inventory, beginning of period 8,456 44,858 Inventory, end of period 8,908 45,141 a. Determine for both companies (1) the inventory turnover and (2) the number of days' sales in inventory. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place. Costco Wal-Mart 1. Inventory turnover: 11.6 8.1 2. Number of days' sales in inventory: 31.5 x days 45.1 x days b. All of the following are true of Costco's strategy except: This strategy results in greater obsolescence risk than that used by Wal-Mart