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Written Comparative Explanations Note: While the data are not from the same year, inferences can be drawn regarding inventory management of the two companies. (Hint: Use two years of data to calculate average inventory for your calculations).

Write a comparative narrative 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:

1- Compute the 2014 values for Amazon.com and the 2015 values for Wal-Mart based on the information in the financial statements: o Inventory turnover (Use cost of sales and inventories)

2- Days of inventory

3- Conclusions concerning the management of the inventory can you draw from this data.

Specimen Financial Statements: Amazon.com, Inc. Amazon.com, Inc. is the world's largest online retailer.

It also produces consumer electronicsnotably the Kindle ebook reader and the Kindle Fire Tablet computerand is a major provider of cloud computing services.

The following are Amazon's financial statements as presented in the company's 2014 annual report. To access Amazon's complete annual report, including notes to the financial statements, follow these steps:

1. Go to www.amazon.com.

2. Select the Investor Relations link at the bottom of the page and

3. then select the 2014 Annual Report under Annual Reports and Proxies.

4. The Notes to Consolidated Financial Statements begin on page 43.

Specimen Financial Statements: WalMart Stores, Inc.

The following are WalMart Stores, Inc.'s financial statements as presented in the company's 2015 annual report.

To access WalMart's complete annual report, including notes to the financial statements, follow these steps:

Go to http://corporate.walmart.com.

Select Financial Information and then Annual Reports & Proxies under the Investors tab.

Select the 2015 Annual Report (WalMart's fiscal year ends January 31).

The Notes to Consolidated Financial Statements begin on page 40

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