a. (1) QT inventory turnover, 32.1 EX 17-12 Inventory analysis OB.. QT. Inc., and Elppa Computers, Inc, compete with each other in the personal computer market. OT assembles computers to customer orders, building and delivering a com- puter within four days of a customer entering an order online. Elppu, on the other hand, builds computers for inventory prior to receiving an order. These computers are sold from Chapter 17 Financial Statement Analysis 865 inventory once an order is received. Selected financial information for both companies from recent financial statements follows (in millions): Cost of merchandise sold Inventory, beginning of period Inventory, end of period QT $56,940 44,754 1,382 Elppa $120,357 92,385 6,317 7,490 a. Determine for both companies (1) the inventory turnover and (2) the number of days' sales in inventory. Round to one decimal place. Interpret the inventory ratios in the context of both companies' operating rulesich