The following data (in thousands) were taken from recent annual reports of Apple Inc., a manufacturer of personal computers and related products, and American Greetings Corporation, a manufacturer and distributor of greeting cards and related products:
........................................... Apple ........... American Greetings
Cost of goods sold ............... $87,846,000 ............ $741,645
Inventory, end of year .............. 791,000 ................ 208,945
Inventory, beginning of the year ... 776,000 ............... 179,730
a. Determine the inventory turnover for Apple and American Greetings. Round to one decimal place.
b. Would you expect American Greetings' inventory turnover to be higher or lower than Apple's? Why?