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Inventory, Analysis Admiral Company and Corporal, Inc., compete with each other in the personal computer market. Admiral's primary strategy is to assemble computers to customer
Inventory, Analysis Admiral Company and Corporal, Inc., compete with each other in the personal computer market. Admiral's primary strategy is to assemble computers to customer orders, rather than for inventory. Thus, for example, Admiral will build and deliver a computer within four days of a customer entering an order on a Web page. Corporal, on the other hand, builds some computers prior to receiving an order, then sells from this inventory once an order is received Below is selected financial information for both companies from a recent year's financial statements (in millions): Admiral Company Corporal, Inc Sales Inventory, beginning of period Cost of goods sold Inventory, end of period $43,800 1,300 36,500 1,500 $58,000 4,805 54,750 5,605 a. Determine for both companies (1) the inventory turnover and (2) the number of days: sales in inventory. Round to one decimal place. Admiral Corporal 1. Inventory turnover 2. Number of days' sales in inventory b. All of the following are true of Admiral's strategy except days days Select This strategy results in a higher inventory turnover ratio than the strategy used by Corporal. This strategy results in a smaller number of days' sales in inventory than the strategy used by Corporal This strategy embraces the ability to serve customers with newer technology than the Corporal strategy This strategy results in greater obsolescence risk than that used by Corporal. Check My Work (3 remaining) Icon Key
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