Clearwater Company and Sparkling Springs are competitors in the bottled water industry. Their financial data (in thousands of dollars) for the current year are as follows:.

Required:
a. Calculate the inventory turnover for each company.
b. Calculate the average number of days the inventory is held by each company.
c. Knowing the type of inventory these companies sell, comment on the reasonableness of the inventory turnover. Which company manages its inventory more efficiently?
d. Which company would be a more profitable investment? Can we tell? Explain.

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Annual Cost of Goods Sold Inventory Dec. 31 Inventory Jan. $39,100 Clearwater Company Sparkling Springs $44,800 3,050 $100,600 15,300 4.700