Harman International Industries is a world-leading producer of loudspeakers and other electronics products, which are sold under brand names like JBL, Infinity, and Harman/Kardon. The company reported the following amounts in its financial statements (in millions):

Required:

1. Determine the inventory turnover ratio and average days to sell inventory for 2016 and 2015. Round to one decimal place.

2. Comment on any changes in these measures and compare the effectiveness of inventory managers at Harman to inventory managers at Panasonic Corporation, where inventory turns over 7.0 times per year (52.1 days to sell). Both companies use the same inventory costing method (FIFO).

Transcribed Image Text:

2016 2015 Net Sales Cost of Goods Sold $6,910 4,820 $6,155 4,340 Beginning Inventory 695 705 665 695 Ending Inventory