Following are asset turnover rates (using year-end account values) for accounts receivable; inventory; and property, plant, and equipment (PPE) for Best Buy (retailer of consumer products), Carnival (vacation cruise line), Caterpillar (manufacturer of heavy equipment), Harley-I) avidson (manufacturer of motorcycles), Microsoft (software company), and Oracle (software company).

Required

a. Interpret and explain differences in receivables turnover for the retailer (Best Buy) vis--vis that for the manufacturers (Caterpillar and Harley-Davidson).

b. Interpret and explain the difference in inventory turnover for Harley-Davidson versus Caterpillar. Why is Oracle's inventory turnover reported as n.a.?

c. Interpret and explain the difference in PPE turnover for Carnival versus Microsoft.

d. What are some general observations you might draw regarding the relative levels of these turnover rates across the different industries?

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Company Name Receivables Turnover Inventory Plant, Property Turnover and Equipment Turnover Best Buy Co 72.90 6.47 12.11 Carnival Corp 29.89 2.26 0.49 Caterpillar Inc. 2.85 4.53 4.50 Harley-Davidson Inc......... 3.26 10.33 5.40 Microsoft Corp. 4.45 11.77 9.68 Oracle Corp.. 3.87 n/a 13.29