EX 17-12 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 com- puter 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 OBJ. 3
EX 17-12 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 com- puter 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 OBJ. 3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
please make sure the answer is correct 100%
Transcribed Image Text:EX 17-12 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 com-
puter 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
OBJ. 3
Transcribed Image Text:Chapter 17 Financial Statement Analysis
865
inventory once an order is received. Selected financial information for both companies
from recent financial statements follows (in millions):
QT
Elppa
$120,357
92,385
Sales
$56,940
Cost of merchandise sold
Inventory, beginning of period
Inventory, end of period
44,754
1,382
6,317
1,404
7490
a. Determine for both companies (1) the inventory turnover and (2) the number of days'
sales in inventory. Round to one decimal place.
b.
Interpret the inventory ratios in the context of both companies' operating
strategies.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education