A recent annual report of Gateway, Inc., reveals the following information (dollar amounts are stated in millions):

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A recent annual report of Gateway, Inc., reveals the following information (dollar amounts are stated in millions):

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a. Compute Gateway's inventory turnover rate for the year (round to nearest tenth).

b. Compute the number of days required by Gateway to sell its average inventory (round to the nearest day).

c. What is the length of Gateway's operating cycle?

d. Gateway's inventory turnover rate is much higher than the inventory turnover of a retail computer business such as CompUSA. Explain why.

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Financial And Managerial Accounting

ISBN: 12

14th International Edition

Authors: Jan R. Williams, Joseph V. Carcello, Mark S. Bettner, Sue Haka, Susan F. Haka

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