Chapter 7 Target Co and Amazon Inventory Turnover Paper

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Chapter 7 Target Co and Amazon Inventory Turnover Paper

In the Cases & Projects section at the back of Chapter 7 in your textbook, find and complete problem “CP 7-6 Comparing inventory ratios for two companies.” Be sure to complete all steps and sections of the problem and show all your work. Clearly label your answers. Submit all your documentation for the problem to the dropbox for grading.

    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:

    Inventories

  1. Determine the inventory turnover for Target and Amazon.com. Round to two decimal places.
  2. Determine the days’ sales in inventory for Target and Amazon.com. Use 365 days and round to one decimal place.
  3. Interpret your results.

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