Question
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started