Costco Wholesale Corporation (COST) and Walmart stores inc. (WMt) compete against each other in general merchandise retailing,

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Costco Wholesale Corporation (COST) and Walmart 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 Walmart Sales $129,025 $500,343 Cost of goods sold Inventory, beginning of period Inventory, end of period 111,882 373,396 8,969 43,046 9,834 43,783


a. Determine for both companies (1) the inventory turnover and (2) the days’ sales in inventory. Round to one decimal place.

b. Compare and interpret the inventory metrics computed in (a).

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Survey Of Accounting

ISBN: 9780357132593

9th Edition

Authors: Carl S. Warren, Amanda Farmer

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