Target Corp. sells merchandise primarily through its retail stores. On the other hand, Amazon .com uses its e-commerce services, features, and technologies to sell its products through the Internet. Recent balance sheet inventory disclosures for Target and Amazon.com (in millons) are as follows: Target Amazon.com Cost of merchandise sold Inventory, end of year Inventory, beginning of year $51,997 $71,651 8,601 10,243 8,282 8,299 a. Determine the inventory turnover for Target and Amazon.com. Round to two decimal places. b. Determine the days' sales in inventory for Target and Amazon.com. Use 365 days and round to one decimal place. c. Interpret your results.
Target Corp. sells merchandise primarily through its retail stores. On the other hand, Amazon .com uses its e-commerce services, features, and technologies to sell its products through the Internet. Recent balance sheet inventory disclosures for Target and Amazon.com (in millons) are as follows: Target Amazon.com Cost of merchandise sold Inventory, end of year Inventory, beginning of year $51,997 $71,651 8,601 10,243 8,282 8,299 a. Determine the inventory turnover for Target and Amazon.com. Round to two decimal places. b. Determine the days' sales in inventory for Target and Amazon.com. Use 365 days and round to one decimal place. c. Interpret your results.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Target Corp. sells merchandise primarily through its retail stores. On the other hand, Amazon
.com uses its e-commerce services, features, and technologies to sell its products through
the Internet. Recent balance sheet inventory disclosures for Target and Amazon.com
(in millons) are as follows:
Target
Amazon.com
Cost of merchandise sold
Inventory, end of year
Inventory, beginning of year
$51,997
$71,651
8,601
10,243
8,282
8,299
a. Determine the inventory turnover for Target and Amazon.com. Round to two decimal
places.
b. Determine the days' sales in inventory for Target and Amazon.com. Use 365 days and
round to one decimal place.
c. Interpret your results.
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