Dell Inc. and Hewlett-Packard Company (HP) compete with each other in the personal computer market....
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Dell Inc. and Hewlett-Packard Company (HP) compete with each other in the personal computer market. Dei's primary strategy is to assemble computers to customer orders, rather than for inventory. Thus, for example, Dell will build and deliver a computer within four days of a customer entering an order on a Web page. Hewlett-Packard, on the other hand, builds some computers prior to receiving an order, then sells from this inventory once an order is recelived. Selected financial information for both companies from a recent year's financial statements follows (in milions): Hewlett-Packard Sales Cost of goods sold Inventory, beginning of period Inventory, end of period a. Determine for both companies (1) the inventory turnover and (2) the number of place, Assume 365 days a year. Dell Inc. $56,940 44,754 1,382 1,404 Company $120,357 92,385 6,317 7,490 companies (1) the inventory turnover and (2) the number of days sales in inventory, Round your cakciulations and answers to Dell Hewlett-Packard 1. Inventory turnover 2. Number of days' sales in inventory b. Dell has a much higherVinventory turnover ratio than does HP. Likewise, Dell has a much smalter x days x days number of days sales in inventory These significant differences are a result of Del's make-to-order strategy

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