Dell Computer Corporation and Hewlett-Packard Corporation (HP) compete with each other in the personal computer market. Dell€™s strategy is to assemble computers to customer orders, rather than for inventory. Thus, for example, Dell will build and deliver a computer within four days of a customer entering an order on a Web page. Hewlett-Packard, 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):

a. Determine for both companies
(1) The inventory turnover
(2) The number of days€™ sales in inventory. Round to one digit after the decimal place.
b. Interpret the inventory ratios by considering Dell€™s and Hewlett-Packard€™s operatingstrategies.

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Dell Computer Corporation Hewlett-Packard Corporation 535,404 29,055 Sales Cost of goods sold Inventory, beginning of period Inventory, end of period $45,955 34,573 5,204 5,797 278 306