QT, Inc. and Elppa Computers, Inc. compete with each other in the personal computer market. QT...

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 $43,800 $58,000

Cost of goods sold 36,500 54,750

Inventory, beginning of period 1,430 6,040

Inventory, end of period 1,630 7,040

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 turnover

2. Number of days' sales in inventory days days

b. QT has a inventory turnover ratio than does Elppa Company. Likewise, QT has a number of days' sales in inventory.

Expert Solution

ekkarill92 answered 2 years ago

Inventory Analysis QT, Inc. and Elppa Computers, Inc. compete with each other in the personal computer...

Inventory Analysis 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 $48,180...

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