The following data (in millions) were adapted from recent financial statements of International Paper Company (IP) and Walmart Inc. (WMT): International Paper Walmart Sales, $19,363 $572,754 Cost of goods sold, 13,832 429,000; Operating income, 999 25,942 Accounts receivable Beginning of year, 2,632 6,516 End of year, 3,232 8,280 Inventory Beginning of year, 1,626 44,949 End of year, 1,814 56,511 Compute the accounts receivable turnover for International Paper and Walmart. Round to one decimal place. Compute the days’ sales in receivables for International Paper and Walmart. Round to nearest day. Compute the inventory turnover for International Paper and Walmart. Round to one decimal place.

Name: The following data (in millions) were adapted from recent financial st
Uploaded: 2024-03-04T10:43:15.000Z
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Description: The following data (in millions) were adapted from recent financial statements of International Paper Company (IP) and Walmart Inc. (WMT): International Paper WalmartSales,

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

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Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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The following data (in millions) were adapted from recent financial statements of International Paper Company (IP) and Walmart Inc. (WMT):

International Paper Walmart

Sales, $19,363 $572,754

Cost of goods sold, 13,832 429,000;

Operating income, 999 25,942

Accounts receivable

Beginning of year, 2,632 6,516

End of year, 3,232 8,280

Inventory

Beginning of year, 1,626 44,949

End of year, 1,814 56,511

Compute the accounts receivable turnover for International Paper and Walmart. Round to one decimal place.
Compute the days’ sales in receivables for International Paper and Walmart. Round to nearest day.
Compute the inventory turnover for International Paper and Walmart. Round to one decimal place.
Compute the days’ sales in inventory for International Paper and Walmart. Round to nearest day.
Compute the return on sales for International Paper and Walmart. Round to one decimal place.
Comment on and explain any differences in International Paper’s and Walmart’s management of inventories and receivables based upon the results in parts (1), (2), (3), (4), and (5).

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Compute the days’ sales in inventory for International Paper and Walmart. Round to nearest day.
Compute the return on sales for International Paper and Walmart. Round to one decimal place.

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