Wal Mart Stores Consolidated Income Statement (amounts in millions)

Year 4 Year 5 Year 6 Year 7

Sales Revenues $83,412 $94,749 $106,146

Cost of Goods Sold $65,586 $74,564 $83,663

Accounts Receivables $ 690 $ 900 $ 853 $ 845

Inventories $11,014 $14,064 $15,989 $ 15,897

Question # 6

Please calculate the accounts receivable and inventory ratios for years 5 thru 7.

Question # 7

Does any of the inventory scenarios and interpretations that we discussed at the end of session 4 apply here?

Question # 8

Why does Wal Mart have such a big difference between its account receivable turnover ratios and inventory ratios? Does it have anything to do with the line of business it is active?