FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Analyze and compare Costco, Walmart, and Nordstrom
The general merchandise retail industry has a number of segments
represented by the following companies:
Company Name
Costco Wholesale Corporation
Membership warehouse
(COST)
Discount general
Walmart Inc. (WMT)
merchandise
Nordstrom, Inc. (JWN)
Fashion department store
For a recent year, the following cost of goods sold and beginning and.
ending inventories are provided from corporate annual reports (in
<millions) for these three companies:
Costco Walmart Nordstrom
Cost of goods sold $132,886 $385,301 $10,155
Inventories:
Beginning of year
End of year
Costco
a. Determine the inventory turnover ratio for all three companies. If
required, round all computations to one decimal place and use
in subsequent calculations. Round final answers to one decimal
place.
Walmart
Nordstrom
Costco
Walmart
Merchandise Concept
11,040
43,783
2,027
11,395 44,269 1,978
Nordstrom
Inventory Turnover
b. Determine the days' sales in inventory for all three companies.
Assume a 365-day year. If required, round all computations to
one decimal place and use in subsequent calculations. Round
final answers to one decimal place.
Days' sales in inventory
X days
days
days
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Transcribed Image Text:Analyze and compare Costco, Walmart, and Nordstrom The general merchandise retail industry has a number of segments represented by the following companies: Company Name Costco Wholesale Corporation Membership warehouse (COST) Discount general Walmart Inc. (WMT) merchandise Nordstrom, Inc. (JWN) Fashion department store For a recent year, the following cost of goods sold and beginning and. ending inventories are provided from corporate annual reports (in <millions) for these three companies: Costco Walmart Nordstrom Cost of goods sold $132,886 $385,301 $10,155 Inventories: Beginning of year End of year Costco a. Determine the inventory turnover ratio for all three companies. If required, round all computations to one decimal place and use in subsequent calculations. Round final answers to one decimal place. Walmart Nordstrom Costco Walmart Merchandise Concept 11,040 43,783 2,027 11,395 44,269 1,978 Nordstrom Inventory Turnover b. Determine the days' sales in inventory for all three companies. Assume a 365-day year. If required, round all computations to one decimal place and use in subsequent calculations. Round final answers to one decimal place. Days' sales in inventory X days days days
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