Hewlett-Packard Company (HP) and Apple Inc. are both developers and marketers of computer equipment and peripherals. However, the two companies follow different manu-facturing strategies. HP maintains a significant portion of its own manufacturing capabilities, while Apple outsources manufacturing to other companies. The following financial statement information is provided for both companies for a recent year (in millions):

A. Determine the inventory turnover for each company. (Round all calculations to one decimal place.)
B. Determine the number of days' sales in inventory for each company. (Use 365 days and round all calculations to one decimal place.)
C. Interpret the difference between the ratios for the two companies.

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Apple $112,258 HP Cost of goods sold Inventories: $73,726 Beginning of year End of year 6,046 1,764 2,111 6,415