Question

The 2013 financial statements of Walgreen Co. reported the Allowing information (in millions): The footnotes to the 2013 financial statements of CVS Caremark (a close competitor of Walgreen’s) reported that the company uses the FIFO method of accounting for inventories. Financial statements reported the following (in millions): Compare the two companies’ days-inventory-outstanding ratios for 2013. To do this properly, you will need to convert the companies’ cost of sales and inventories to a common inventory costing method. Which company is more efficient with its inventory?



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