Find their annual reports for the following companies:
Best Buy 2020
Dollar General 2020
You select a 3rd company for 2020.
Using Excel, develop a spreadsheet detailing their; Annual Cost of Goods Sold $, Inventory Level $, and then calculate their Inventory Holding $ (use 25% of their inventory level $) and their Inventory Turnover Ratio. Cost of Goods Sold $ can be found on the Income Statement and Inventory $ can be found on the Balance Sheet. The Inventory holding cost and Turnover Ratio calculations must be performed in Excel using a formula. Format your spreadsheet to look professional.
BE SURE TO INCLUDE ALL 000’S IN YOUR NUMBERS. OFTEN THE ANNUAL REPORT WILL LIST VALUES IN THOUSANDS OR MILLIONS. There is a short video in this Module titled Inventory Turnover Ratio – How To. This will show you how to read an annual report and format Excel for this assignment.
Then in a ONE PAGE EXECUTIVE SUMMARY (double spaced, Times New Roman, 12 pt font), report the amount of money each company is currently holding in Inventory (that is your Inventory Level value) and how much they spent on inventory during an entire year (that is your Cost of Goods Sold value). Briefly explain why Supply Chain jobs are so important to companies related to the amount of money the companies have invested in inventory.
The point of this assignment is to see how much money is being held in Inventory. Supply Chain Management is a hot field with many well paying jobs, because the investment from the companies involved is so great.
If you weren’t provided a link to an annual report, here is how you would find the annual report with the appropriate financial statements.