The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a manufacturer of personal computers and related products, and Happy Times Corporation, a manufacturer and distributor of greeting cards and related products: TomatoHappy TimesCost of merchandise sold$4,890,100 $941,700 Inventory, end of year98,000 98,000 Inventory, beginning of the year60,000 121,000 a. Determine the inventory turnover for Tomato and Happy Times. Round to one decimal place.Tomato Happy Times b. Would you expect Happy Times inventory turnover to be higher or lower than Tomato’s?

a. Calculate the inventory turnover for company T and company H. Company T: Working note:…

Answered: The following data (in millions) were…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a manufacturer of personal computers and related products, and Happy Times Corporation, a manufacturer and distributor of greeting cards and related products:

	Tomato	Happy Times
Cost of merchandise sold	$4,890,100		$941,700
Inventory, end of year	98,000		98,000
Inventory, beginning of the year	60,000		121,000

a. Determine the inventory turnover for Tomato and Happy Times. Round to one decimal place.

Tomato
Happy Times

b. Would you expect Happy Times inventory turnover to be higher or lower than Tomato’s?

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