comparative Analysis
Purpose of Assignment
The purpose of this assignment is to evaluate the inventory section of two companies using basic comparative analysis, and to interpret the data to gain insight about the company’s inventory management.
Assignment Steps
Resources: Appendices D and E located in Financial Accounting: Tools for Business Decision Making
Note: While the data are not from the same year, inferences can be drawn regarding inventory management of the two companies.
Write a 1,050-word comparative analysis using the financial statements of Amazon.com, Inc. presented in Appendix D, and the financial statements for Wal-Mart Stores, Inc., presented in Appendix E, including the following:
Compute the 2014 values for Amazon.com and the 2015 values for Wal-Mart based on the information in the financial statements:
Inventory turnover (Use cost of sales and inventories)
Days of inventory
Conclusions concerning the management of the inventory can you draw from this data.
Show work on Excel® spreadsheet and submit with analysis.
Appendix “D”
https://phoenix.vitalsource.com/#/books/9781119228…
Appendix “E”
https://phoenix.vitalsource.com/books/978111922830…
20171017023037week4_assignment__individual_amazon_vs_walmart (1)
Solution Preview
Comparative Analysis for Wal-Mart Inc. and Amazon
Name
Institutional Affiliation
Between 2013 and 2015, Walmart Inc. observed an increasing trend in revenues. However, the company’s revenue dropped in 2016 to 482.13B from 485.65B in 2015. It then rose to 485.14B in 2017. The pattern shows that the company was able to identify the cause of the drop in its revenues. It, therefore, engaged in advertising and giving discounts. For instance, it started offering free same day shipping to its customers which increased its revenue.
(1,026 words)