The following data (in millions) were taken from recent annual reports of Apple Inc., a manufacturer of personal computers and related products, and Mattel Inc., a manufacturer of toys, including Barbie®, Hot Wheels®, and Disney Classics:
__________________________________ Apple __________ Mattel
Cost of merchandise sold .................. $140,089 .............. $2,896
Inventory, end of year ........................ 2,349 .................... 588
Inventory, beginning of the year ............ 2,111 .................... 562
a. Determine the inventory turnover for Apple and Mattel. Round to one decimal place.
b. Would you expect Mattel's inventory turnover to be higher or lower than Apple's? Why?