Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

nventory Analysis Corporal Inc. and Admiral Company compete with each other in the personal computer market. Corporal's primary strategy is to assemble computers to customer

nventory Analysis Corporal Inc. and Admiral Company compete with each other in the personal computer market. Corporal's primary strategy is to assemble computers to customer orders, rather than for inventory. Thus, for example, Corporal will build and deliver a computer within four days of a customer entering an order on a Web page. Admiral, 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): Corporal Inc. Admiral Company Sales $61,320 $77,400 Cost of goods sold 51,100 73,000 Inventory, beginning of period 1,706 6,760 Inventory, end of period 1,906 7,960 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. Corporal Admiral 1. Inventory turnover 2. Number of days' sales in inventory days days b. Corporal has a inventory turnover ratio than does Admiral Company. Likewise, Corporal 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_2

Step: 3

blur-text-image_3

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

Establishing A CGMP Laboratory Audit System A Practical Guide

Authors: David M. Bliesner

1st Edition

0471738409, 978-0471738404

More Books

Students also viewed these Accounting questions

Question

2. Is this illegal harassment/discrimination?

Answered: 1 week ago

Question

a. Describe the encounter. What made it intercultural?

Answered: 1 week ago