“Inventory Valuations” Please respond to the following:
- From the e-Activity, examine the costs that Wal-Mart includes in inventory and cost of sales. Defend the three (3) descriptions that Wal-Mart used to classify inventories, and suggest two (2) other descriptions that Wal-Mart could include within their notes that would be useful to financial statement users. Justify your response.
- Discuss the overall significance of inventory turnover to a retail store. Compare Wal-Mart’s 2012 and 2013 inventory turnover rate, and give your opinion on the way in which Wal-Mart could improve its inventory turnover ratio. Provide a rationale for your response.