Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Inventory Analysis QT, Inc. and Elppa Computers, Inc. compete with each other in the personal computer market. QT assembles computers to customer orders, building and

image text in transcribed
Inventory Analysis 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): Elppa Sales $87,600 $112,200 Cost of goods sold 73,000 105,850 Inventory, beginning of period 2,760 10,932 Inventory, end of period 2,960 12,732 a. Determine for both companies (1) the inventory turnover and (2) the number of days' sales in inventory. Round your calculations and answers to one decimal place. Assume 365 days a year QT Elppa 1. Inventory tumover 2. Number of days' sales in inventory days days b. OT has a inventory turnover ratio than does Elpa Company. Ukewise, T has a number of days' sales in Inventory

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

14th edition

1337270598, 978-1337270595

Students also viewed these Accounting questions