Solution-Which company appear to make most efficient use of

Which company appear to make most efficient use of inventory

Assignment Help Accounting Basics

Reference no: EM131654993

Assignment- Examining Inventory Turnover and Days Inventory on Hand

Concepts

For CVS:

1. What inventory methods does CVS use to value its inventory: is it the same or different from what Walgreen's uses? If it is different how will that impact the financial statements?

2. How much is CVS' reserve for estimated inventory losses?

Analysis

For CVS:

1. Calculate inventory turnover and days inventory on hand for the past five (5) years in order to determine a trend.

2. Compare to Walgreens (for the last 5 years) and the industry average (for the current year).

3. What inventory method does CVS and Walgreens use?

4. Are there any major fluctuation or difference to comparators, give reasons for the fluctuations or differences using what you know regarding the industry, the economy, and linking what you have read in the management discussion and analysis as well as the Notes to the Consolidated Financial Statements related to inventory.

5. Has CVS or Walgreens improved its performance over the past 5 years?

6. Which company appears to make the most efficient use of inventory?

Reference:

Text: Financial Accounting: Tools for Business Decision Making
Author: Kimmel, Weygandt, Kieso
Publisher: Wiley
Ed/Year: 7th/2013
ISBN-13 (hard cover): 978-1118162286
ISBN (e-text): 978-1118562178.

Reference no: EM131654993

Questions Cloud

Why distribution of service time is not normally distributed : Based on these sample data, is there sufficient evidence to conclude that the distribution of service time is not normally distributed?

Difference between odbc and jdbc database interfaces : What is the difference between ODBC and JDBC database interfaces? Why is it important to have effective and powerful interfaces like these for databases?

Not based on tangible things : Create a class based on tangible things like a car or a fish. Think of a class that is not based on tangible things?

Explain the differences in cell wall and cell membrane : Explain the differences in cell wall and cell membrane structures of gram-positive and gram-negative bacteria cause

Which company appear to make most efficient use of inventory : Which company appears to make the most efficient use of inventory? What inventory method does CVS and Walgreens use?

Discuss sexism is only fighting for the male : Feminism is the justice between men and women. Everything man does, woman can do the same

Primary application in the marketplace : Consider Unix, Linux, MacOS, Android and Windows operating systems. Consider the primary application of each in the marketplace.

List of running services on a windows machine : Program to display a list of running services on a windows machine

What can we do to assure that both quality care : What can we do to assure that both quality care and cost-effective programs are in place?

User Account

All Pages

Which company appear to make most efficient use of inventory

Reference no: EM131654993

Reference no: EM131654993

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT