Question

For 2018​, ​Wal-Mart and Target had the following information​ (all values are in millions of​ dollars):

	Sales ​(Income Statement)	Cost of Goods Sold ​(Income Statement)	Accounts Receivable ​(Balance Sheet)	Inventory ​(Balance Sheet)
​ Wal-Mart	514,405	385,301	6,280	44,269
Target	75,356	53,299	1,100	9,497

a. What is each​ company's accounts receivable​ days?

b. What is each​ company's inventory​ turnover?

c. Which company is managing its accounts receivable and inventory more​ efficiently?

(walmart/target) is the company managing its accounts receivable more efficiently.

(walmart/target) is the company managing its inventory more efficiently.

Answer 1

a.
	Wal-Mart	Target
Accounts receivable days [ (Accounts receivable / Sales ) * 365 ]	4.46	5.33
b.
	Wal-Mart	Target
Inventory turnover [ Cost of goods sold / Inventory ]	8.70	5.61
c.
Answer :
walmart is the company managing its accounts receivable more efficiently.
walmart is the company managing its inventory more efficiently.

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