EXAMPLE 11.2: Inventory Turnover Calculation Dell Computer reported the following information in its 2005 annual report (all dollar amounts are expressed in millions):The cost of revenue corresponds to what we call cost of goods sold. One might think that U.S. companies, at least, would use a common accounting terminology, but this is not true. The inventory turnover calculation is Inventory turnover = 40,190/228+231= 87.56 turns per year This is amazing performance for a high-tech company, but it explains much of why the company is such a financial success. The corresponding weeks of supply calculation is Weeks of supply (228 + 231/40,190) X 52 = .59 week1. Using the data from the Dell Computer annual report given in Example 11.2 on page 391 of your text, determine how Dell calculated the four days' supply of raw materials. Show the calculations Do you think four days? supply is a valid representation of the amount of raw material Dell has on hand at the end of the year? Why or why not