Captain Geech Boating Company sells fishing boats to fisherman. Its beginning and ending inventories for 2000 are $\$ 462$ million and $\$ 653$ million, respectively. It had cost of goods sold of $\$ 1.578$ billion for the year ended December 31, 2000. Merchant Marine Company also sells fishing boats. Its beginning and ending inventories for the year 2000 are $\$ 120$ million and $\$ 90$ million, respectively. It had cost of goods sold of $\$ 1.1$ billion for the year ended December 31, 2000.

Common-Size Income Statements Required:

1. Calculate the inventory turnover and number of days' sales in inventory for the two companies.

2. Interpretive Question: Are the results of these ratios what you expected? Which company is managing its inventory more efficiently?