You are comparing the inventory holdings at 10 computer companies. The following table summarizes the numbers:

a. Estimate inventory as a Percent of revenues for each of these firms. Based on the average, dot Apple Computer have too, much, or too little inventory? What about IBM?

b. Evaluate the relationship between working capital holdings and the magnitude of revenues use In (Revenues)]. Is there one?

c. Based on your analysis in (b), does Apple Computer have too much or too little inventory? What about IBM?

Firm Apple Computer Cisco Systems Compaq Dell Gateway Hewlett-Packard IBM Iomega Micron NCR Inventory $473 655 2,131 374 172 2,637 5,130 132 223 392 Revenues $6,134 12,154 39,250 25,600 8,650 42,370 88,000 1,694 1,438 6,200 Firm Apple Computer Cisco Systems Compaq Dell Gateway Hewlett-Packard IBM Iomega Micron NCR Inventory $473 655 2,131 374 172 2,637 5,130 132 223 392 Revenues $6,134 12,154 39,250 25,600 8,650 42,370 88,000 1,694 1,438 6,200