ing business CA You are considering an investment in the common stock of Wal-Mart. The following information is from the financial statements of Wal-Mart Stores, Inc. and Subsidiaries included in Form 10-K for fiscal years 2014 and 2013 (in millions of dollars): horyzing Cost of sales for the year ended: January 31, 2014 January 31, 2013 Inventories: January 31, 2014 January 31, 2013 January 31, 2012 $358,069 352,297 44,858 43,803 40,714 The following information is from the financial statements included in Form 10-K for fiscal years 2013 and 2012 for Target Corporation (in millions of dollars): Cost of products for the year ended: February 1, 2014 February 2, 2013 Inventory: February 1, 2014 February 2, 2013 January 28, 2012 $51,160 50,568 8,766 7,903 7,918
ing business CA You are considering an investment in the common stock of Wal-Mart. The following information is from the financial statements of Wal-Mart Stores, Inc. and Subsidiaries included in Form 10-K for fiscal years 2014 and 2013 (in millions of dollars): horyzing Cost of sales for the year ended: January 31, 2014 January 31, 2013 Inventories: January 31, 2014 January 31, 2013 January 31, 2012 $358,069 352,297 44,858 43,803 40,714 The following information is from the financial statements included in Form 10-K for fiscal years 2013 and 2012 for Target Corporation (in millions of dollars): Cost of products for the year ended: February 1, 2014 February 2, 2013 Inventory: February 1, 2014 February 2, 2013 January 28, 2012 $51,160 50,568 8,766 7,903 7,918
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Making Business Decisions: Analyzing Wal-Mart's Inventory Turnover Ratio
You are considering an investment in the common stock of Wal-Mart. The following information is from the financial statements of Wal-Mart Stores, Inc. and
Subsidiaries included in Form 10-K for fiscal years 2014 and 2013 (in millions of dollars):
Cost of sales for the year ended:
January 31, 2014
January 31, 2013
Inventories:
January 31, 2014
January 31, 2013
January 31, 2012
$358,069
352,297
44,858
43,803
40,714
The following information is from the financial statements included in Form 10-K for fiscal years 2013 and 2012 for Target Corporation (in millions of dollars):
Cost of products for the year ended:
February 1, 2014
February 2, 2013
Inventory:
February 1, 2014
February 2, 2013
January 28, 2012
$51,160
50,568
8,766
7,903
7,918

Transcribed Image Text:January 28, 2012
7,918
Use 360 days a year.
Required:
1. Calculate the inventory turnover ratios for Wal-Mart and Target Corporation for the years ending January 31, 2014 and February 1, 2014, respectively. If
required, round your answers to one decimal places..
Wal-Mart:
times
Target Corporation:
times
2. Which company appears to be performing better?
Assume Company A has a inventory turnover ratio of 52.8 times and Company B has inventory turnover ratio of 12.6. Based on this information, which of the
following statement is correct?
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