Inventory Management.

The following financial information is taken from the annual report of Intel Corporation:

$($amounts in millions$)$ Year $2$ Year $1$

Net revenues $$39,826$ $$35,209$

Cost of goods sold $16,27714,963$

Ending inventories $3,1262,621$

Using the above data, calculate the company's inventory turnover, inventory$-$on$-$hand period, and gross profit percentage for Year $1$ and Year $2.$

Round all answers to nearest one decimal place.

Year $2$ Year $1$

Inventory turnover Answer

$5\mathrm{.}2$

Answer

Inventory$-$on$-$hand period Answer

Answer

Gross profit percentage Answer

$\%$ Answer

$\%$Inventory Management.

The following financial information is taken from the annual report of Intel Corporation:

Using the above data, calculate the company's inventory turnover, inventory$-$on$-$hand period, and gross profit percentage for Year $1$ and Year $2.$

Round all answers to nearest one decimal place.

Is the company's inventory management improving?

Intel's inventory management effectiveness declined.

Intel uses FIFO to value its inventory. Would these ratios look better if the company used LIFO instead?

Yes, Intel's inventory management would have looked somewhat better if the company had used LIFO instead of FIFO to value its inventory.