Inventory Turnover

The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a manufacturer of personal computers and related products, and Happy Times Corporation, a manufacturer and distributor of greeting cards and related products:

	Tomato		Happy Times
Cost of merchandise sold	$5,968,500		$1,029,200
Inventory, end of year	143,000		149,000
Inventory, beginning of the year	87,000		183,000

a. Determine the inventory turnover for Tomato and Happy Times. Round to one decimal place.

Tomato	fill in the blank 1
Happy Times	fill in the blank 2

b. Would you expect Happy Times inventory turnover to be higher or lower than Tomatos?

Higher or Lower