Amazon Target Cost of goods sold $71,651 $51,997 Inventories: Beginning of year End of year 8,299 8,282 10,243 8,601

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Target Corporation (TGT) is one of the largest value-priced general merchandisers operating in the L'nited States. Target sells through nearly 1,800 brick-and-mortar stores and through the Internet. Amazon and Target compete for customers across a wide variety of products, including media, general merchandise, apparel, and consumer electronics. Cost of goods sold and inventory information from a recent annual report are provided for both companies as follows (in millions):

a. Compute the inventory turnover far both companies. Round all calculations to one decimal place.
b. Compute the number of days' sales in inventory for both companies. Use 365 days and round all calculations to one decimal place.
c. - Which company has the better inventory efficiency?
d. What might explain the difference in inventory efficiency between the two companies?

Amazon
Target
Cost of goods sold
$71,651
$51,997
Inventories:
Beginning of year
End of year
8,299
8,282
10,243
8,601
Transcribed Image Text:Amazon Target Cost of goods sold $71,651 $51,997 Inventories: Beginning of year End of year 8,299 8,282 10,243 8,601
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