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:

TomatoHappy TimesCost of merchandise sold$5,088,650 $770,500 Inventory, end of year135,000 103,000 Inventory, beginning of the year82,000 127,000

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

Tomatofill in the blank 1Happy Timesfill in the blank 2

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

Lower