Merchandise Concept Company Name Costco Wholesale Corporation (COST) Wal-Mart Stores, Inc. (WMT) Nordstrom, Inc. (JWN) Membership warehouse Discount general merchandise Fashion department store Costco Wal-Mart Nordstrom Cost of goods sold $102,901 $360,984 $9,168 Inventories: Beginning of year End of year 1,733 8,908 8,969 45,141 44,469 1,945

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

The general merchandise retail industry has a number  of segments  represented by the following companies:

For a recent year, the following cost of goods sold and beginning and ending inventories arc provided from corporate annual reports (in millions) for these three companies:

a. Determine the inventory turnover ratio for all three companies. Round all calculations to one decimal place.
b. Determine the number of days' sales in inventory for all three companies. Use 365 days and round all calculations to one decimal place.

c.Interpret these results based on each company's merchandising concept.

Merchandise Concept
Company Name
Costco Wholesale Corporation (COST)
Wal-Mart Stores, Inc. (WMT)
Nordstrom, Inc. (JWN)
Membership warehouse
Discount general merchandise
Fashion department store
Transcribed Image Text:Merchandise Concept Company Name Costco Wholesale Corporation (COST) Wal-Mart Stores, Inc. (WMT) Nordstrom, Inc. (JWN) Membership warehouse Discount general merchandise Fashion department store
Costco
Wal-Mart
Nordstrom
Cost of goods sold
$102,901
$360,984
$9,168
Inventories:
Beginning of year
End of year
1,733
8,908
8,969
45,141
44,469
1,945
Transcribed Image Text:Costco Wal-Mart Nordstrom Cost of goods sold $102,901 $360,984 $9,168 Inventories: Beginning of year End of year 1,733 8,908 8,969 45,141 44,469 1,945
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education