To answer this question use the Wesfarmers 2016 annual report and the Woolworths 2016 financial report. You are expected to find both of these by conducting an internet search.

24 Research and analysis Lo1,3,6,7 Access the latest annual report for Wesfarmers. Required a Examine the company's income statement and balance sheet and conduct horizontal and vertical analyses of the company's cost of goods sold and inventory balances. Compare to Woolworths Examine the company's inventories note to its financial statements. Do they reveal the inventory costing method(s) used to account for its inventory? Does the company follow the lower-of-cost-and-net-realisable-value rule? Is there any other information given about inventory? b c Calculate the inventory tumover and days-in-inventory ratios for the latest year Based on your answers above, write a paragraph explaining your opinion of Wesfarmers' inventory position Use facts to support your answer d