Comparative Analysis Problem: Amazon.com, Inc. vs. Wal-Mart Stores, Inc.
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: Financial Accounting: Tools for Business Decision Making Write a 700 to 1,000-word comparative 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 these 2014 values for each company 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. Show work on Excel® spreadsheet and submit with analysis. I’ve provided the PDF for both companies, but here are the instructions just in case. 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 (Wal‐Mart’s fiscal year ends January 31). 4. The Notes to Consolidated Financial Statements begin on page 40. 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.