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Inventory Analysis QT, Inc. and Elppa Computers, Inc. compete with each other in the personal computer market. QT assembles computers to customer orders, building and delivering a computer within four days of a customer entering an order online. Elppa, on the other hand, builds computers for inventory prior to receiving an order. These computers are sold from inventory once an order is received. Selected financial information for both companies from recent financial statements follows (in millions): QT Elppa Sales Cost of goods sold Inventory, beginning of period Inventory, end of period 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. $65,700 54,750 1,775 1,975 85,100 80,300 7,254 8,454 QT Elppa 1. Inventory turnover 2. Number of days' sales in inventory b. QT has a higherinventory turnover ratio than does Elppa Company. Likewise, QT has a smaller number of days' sales in inventory days days