This information is available for the Automotive and Electronics Divisions of Prestige Motors Ltd for 2015. Prestige Motors uses the FIFO inventory method. 

Required

(a) Calculate inventory turnover, days in inventory, and current ratio for Prestige Motors Ltd for 2015.

(b) If a company has a low inventory turnover or high days in inventory, is it considered to be a good or bad sign for the entity’s shareholders? Explain your answer. 

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(in millions) Beginning inventory Ending inventory Current assets Current liabilities Cost of sales Sales 2015 $ 36306 36621 133 089 143418 353919 421 299