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

Note:While the data are not from the same year, inferences can be drawn regarding inventory management of the two companies.(Hint: Use two years of data to calculate average inventory for your calculations).

Writea brief comparative narrative 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 the 2014 values for Amazon.com and the 2015 values for Wal-Mart 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.

Usethe attached Excelspreadsheet andsubmitwith analysis

Specimen Financial Statements: Amazon.com, Inc. Amazon.com, Inc. is the world's largest online retailer. It also produces consumer electronicsnotably the Kindle ebook reader and the Kindle Fire Tablet computerand is a major provider of cloud computing services. The following are Amazon's financial statements as presented in the company's 2014 annual report. To access Amazon's complete annual report, including notes to the financial statements, follow these steps: 1. Go to www.amazon.com. 2. Select the Investor Relations link at the bottom of the page and then select the 2014 Annual Report under Annual Reports and Proxies. 3. The Notes to Consolidated Financial Statements begin on page 43. Specimen Financial Statements: WalMart Stores, Inc. The following are WalMart Stores, Inc.'s financial statements as presented in the company's 2015 annual report. To access WalMart's complete annual report, including notes to the financial statements, follow these steps: 1. Go to http://corporate.walmart.com. 2. Select Financial Information and then Annual Reports & Proxies under the Investors tab. 3. Select the 2015 Annual Report (WalMart's fiscal year ends January 31). 4. The Notes to Consolidated Financial Statements begin on page 40. Name Section Date (a) Chapter 6 Comparative Analysis Problem 2 Amazon.com, Inc. vs. Wal-Mart Stores, Inc. Computations: Appendix D Amazon.com Inventory turnover: Days in inventory: Written (b) Comparative Explanations 377 Appendix E Wal-Mart 377 r 6 Comparative Analysis Problem 2 n.com, Inc. vs. Wal-Mart Stores, Inc. Appendix E Wal-Mart 377 377