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QT, Inc. and Elppa Computers, Inc. compete with each other in the personal computer market. QT assembles computers to customer orders, building 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 receiving 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): QT Elppa Sales $56,940 $120,357 Cost of goods sold 44,754 92,385 Inventory, beginning of period 1,382 6,317 Inventory, end of period 1,404 7.490 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. QT Elppa 1. Inventory tumover 31.2 X 11 x 2. Number of days' sales in inventory 13 x days s. QT has a much higher inventory turnover ratio than does Epe. Likewise, T has a much smaller number of days' sales in inventory. These significant differences are a result of T's make-to-order strategy Check a. 1. Divide the cost of goods sold by the average inventory. Average inventory - (Beginning inventory + Ending inventory) 2. a.2. Divide the average inventory by the average daily cost of goods sold. Average inventory - (Beginning inventory Ending inventory) +2. Average dalycost of goods sold cost of goods sold + 365 days. b. Consider the relationship of the accounts involved. Consider the differences between the two companies Check My Work Previous Next Emain Submit Augment for Grading 20 6 3 5 7 8 9 0 E - O T R Y U P D F G I L V B N M u command option

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