Monster Beverage Corporation (MNST) develops, markets, and sells energy and other alternative beverage brands. Brown-Forman Corporation (BF.B) manufactures and sells a wide variety of spirit and wine beverages, such as Jack Daniel’s®. The cost of goods sold and inventory were obtained from a recent annual report for both companies as follows (in millions):

a. Determine the inventory turnover for both companies.
b. Determine the days’ sales in inventory for both companies. Use 365 days.
c. Interpret the difference in inventory efficiency based on the companies’ respective product types.

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Cost of goods sold Inventories: Beginning of year End of year Monster Beverage $1,512 256 278 Brown-Forman $ 973 1,379 1,520