Admiral Company and Corporal, Inc., compete against each other in general merchandise retailing, gas stations, pharmacies, and optical centers. Below is selected financial information for both companies from a recent year's financial statements (in millions)

	Admiral Company		Corporal, Inc.
Sales	$30,660		$38,700
Cost of goods sold	25,550		36,500
Inventory, beginning of period	791		3,210
Inventory, end of period	791		3,810

a. Determine for both companies (1) the inventory turnover and (2) the days' sales in inventory. Round to one decimal place.

	Admiral		Corporal
1. Inventory turnover	fill in the blank 1		fill in the blank 2
2. Days' sales in inventory	fill in the blank 3	days	fill in the blank 4	days

b. All of the following are true of Admiral's strategy except:

1.This strategy results in a higher inventory turnover ratio than the strategy used by Corporal.

2. This strategy results in a smaller days' sales in inventory than the strategy used by Corporal.

3. This strategy embraces the ability to serve customers with newer technology than the Corporal strategy.

4. This strategy results in greater obsolescence risk than that used by Corporal.