The following data (in millions) were adapted from recent financial statements of International Paper Company (IP) and Walmart Inc. (WMT): International Paper Walmart Sales, $19,363 $572,754 Cost of goods sold, 13,832 429,000; Operating income, 999 25,942 Accounts receivable Beginning of year, 2,632 6,516 End of year, 3,232 8,280 Inventory Beginning of year, 1,626 44,949 End of year, 1,814 56,511 Compute the days’ sales in inventory for International Paper and Walmart. Round to nearest day. Compute the return on sales for International Paper and Walmart. Round to one decimal place. Comment on and explain any differences in International Paper’s and Walmart’s management of inventories and receivables based upon the results in parts (1), (2), (3), (4), and (5).
The following data (in millions) were adapted from recent financial statements of International Paper Company (IP) and Walmart Inc. (WMT):
International Paper Walmart
Sales, $19,363 $572,754
Cost of goods sold, 13,832 429,000;
Operating income, 999 25,942
Beginning of year, 2,632 6,516
End of year, 3,232 8,280
Inventory
Beginning of year, 1,626 44,949
End of year, 1,814 56,511
- Compute the days’ sales in inventory for International Paper and Walmart. Round to nearest day.
- Compute the return on sales for International Paper and Walmart. Round to one decimal place.
- Comment on and explain any differences in International Paper’s and Walmart’s management of inventories and receivables based upon the results in parts (1), (2), (3), (4), and (5).
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