Chapter 6, Problem 15E

(a)

To determine

Inventory: It refers to the total stock of such goods or items which are held by the business organizations with the purpose of sale.

Inventory turnover: It refers to that number of times or rate at which inventory of the firm is purchased and sold during a particular time period.

Days in inventory: It refers to that number of days for which the inventory remains with the company before it is sold.

To determine: The inventory turnover and days in inventory of each company.

(b)

To determine

The company which moves its inventory more quickly.