Analyze and Compare Costco, Wal-Mart, and Nordstrom: Accounting Homework, HTU, US

Assignment Brief:

Analyze and compare Costco, Wal-Mart, and Nordstrom

The general merchandise retail industry has a number of segments represented by the following companies:

 Company Name Merchandise Concept Costco Wholesale Corporation (COST) Membership warehouse Wal-Mart Stores, Inc. (WMT) Discount general 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 Wal-Mart Nordstrom Cost of goods sold \$102,901 \$360,984 \$9,168 Inventories: Beginning of year 8,908 45,141 1,733 End of year 8,969 44,469 1,945
• Determine the inventory turnover ratio for all three companies. Round all calculations to one decimal place.
 Inventory Turnover Costco Wal-Mart Nordstrom
• Determine the number of days’ sales in inventory for all three companies. Assume a 365-day year. If required, round all computations to one decimal place and use it in subsequent calculations. Round final answers to one decimal place.
 Number of Days’ Sales in Inventory Costco Days Wal-Mart Days Nordstrom Days
• Based on the results, which of the following statements is INCORRECT with regard to each company’s merchandising concept?
1. Costco holds only mass-appeal items that are sold quickly off the shelf.
2. Wal-Mart has attractive pricing, but the inventory moves more slowly than would be the case at a club warehouse.
3. Nordstrom’s inventory moves slowly but at a higher margin.
4. Wal-Mart’s inventory moves very quickly at higher margins.

The post Analyze and Compare Costco, Wal-Mart, and Nordstrom: Accounting Homework, HTU, US appeared first on .

Reference no: EM132069492

GET HELP WITH YOUR PAPERS

WhatsApp
Hello! Need help with your assignments? We are here