The following data (in millions) were adapted from recent financial statements of International Paper Company (IP) and Wal-Mart Stores Inc. (WMT)

1. Compute the accounts receivable turnover for International Paper and Wal-Mart. Round to one decimal place.
2. Compute the days' sales in receivables for International Paper and Wal-Mart. Round to nearest day.
3. Compute the inventory turnover for International Paper and Wal-Mart. Round to one decimal place.
4. Compute the days' sales in inventory for International Paper and Wal-Mart. Round to nearest day.
5. Compute the return on sales for International Paper and Wal-Mart. Round to one decimal place.
6. Comment on and explain any differences in International Paper's and Wal-Mart's management of inventories and receivables based upon the results in parts (1), (2), (3), (4), and (5).

Transcribed Image Text:

Sales Cost of goods sold Operating income Accounts receivable: International Paper $23,617 16,254 1,517 Wal-Mart $484,651 365,086 27,147 Beginning of year End of year 4,058 3,414 6,677 6,778 Inventory: Beginning of year End of year 2,825 2,424 44,858 45,141