Question
i am having trouble with this one QT, Inc. and Elppa Computers, Inc. compete with each other in the personal computer market. QT assembles computers
i am having trouble with this one
QT, Inc. and Elppa Computers, Inc. compete with each other in the personal computer market. QT assembles computers to customer orders, building and delivering a computer within four days of a customer entering an order online. Elppa, on the other hand, builds computers for inventory prior to receiving an order. These computers are sold from inventory once an order is received. Selected financial information for both companies from recent financial statements follows (in millions):
QTElppaSales$74,460$96,700Cost of goods sold62,05091,250Inventory, beginning of period2,62010,525Inventory, end of period2,82012,325
a.Determine for both companies (1) theinventory turnoverand (2) thenumber of days' sales in inventory. Round your calculations and answers to one decimal place. Assume 365 days a year.
QTElppa1.Inventory turnoverfill in the blank 1
fill in the blank 2
2.Number of days' sales in inventoryfill in the blank 3
daysfill in the blank 4
days
b.QT has a
inventory turnover ratio than does Elppa Company. Likewise, QT has a
number of days' sales in inventory.
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