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

Writea 1,050-word comparative analysis using the financial statements of Amazon.com, Inc. presented in Appendix D, and the financial statements for Wal-Mart Stores, Inc., presented in Appendix E, including the following:

• Compute these 2014 values for each company based on the information in the financial statements:Inventory turnover (Use cost of sales and inventories)
• Days of inventory
• Conclusions concerning the management of the inventory can you draw from this data.

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Name Section Date Ronald Wuestefeld Chapter 6 Comparative Analysis Problem 2 ACC/290 Comparative Analysis Problem: Amazon.com, Inc. vs Wal-Mart Stores, Inc. 24-Apr-17 Amazon.com, Inc. vs. Wal-Mart Stores, Inc. (a) Amazon.com Wal-Mart Inventory turnover: Cost sales 2013 inventory 2014 inventory Average inventory Inventory trunover 62,752 7,411 8,299 7,855 8 Cost sales 2013 inventory 2014 inventory Average inventory inventory turnover 358,069 43,803 44,858 44,331 8 365 8 inventory turnover 46 Days in Inventory 365 8 45 Days in inventory: No of days Inventory turnover Days in Inventory (b) Based on the inventory from Amazon and Wal-Mart. When it comes to information system That comes from Amazon days in inventory Vs Wal-Mart days in inventory. Wal-Mart inventory does not sit long at company stores. So for management teams at Wal-Mart can use the information to make changes on moving product faster or how much to order on certain things. So there over all cost of sales are not so high. Amazon inventory information can show that with lower inventory purchase. The company can change what products are order to bring down their days in inventory to be over 46 days or they can order more product. The management can also look on ways to move product faster, Maybe have more items on sale and maybe doing inventory more that once a year. Companies like Amazon and Wal-Mart can do little changes to improve companys performances and trends that come for customers. 377 377