Question: Inventory Analysis QT, Inc. and Elppa Computers, Inc. compete with each other in the personal computer market, QT assembles computers to customer orders, buliding and
Inventory Analysis QT, Inc. and Elppa Computers, Inc. compete with each other in the personal computer market, QT assembles computers to customer orders, buliding and delivering a computer within four days of a customer entering an order online. Elppa, on the other hand, builds computers for inventory prior to recelving an order. These computers are sold from inventory once an order is received. Selected financial information for both companies from recent financial statements follows (in millions): a. Determine for both companies (1) the inventory turnover and (2) the number of days' sales in inventory, Round your calculations and answers to one decimal place. Assume 365 days a year. b. QT has a inventory turnover ratio than does Elppa Company. Ukewise, QT has a number of days' sales in inventory
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
