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

50.1K

Verified Solution

Question

Accounting

Inventory Analysis
QT, Inc. and Elppa Computers, Inc. compete with each other inthe personal computer market. QT assembles computers to customerorders, building and delivering a computer within four days of acustomer entering an order online. Elppa, on the other hand, buildscomputers for inventory prior to receiving an order. Thesecomputers are sold from inventory once an order is received.Selected financial information for both companies from recentfinancial statements follows (in millions):
QT Elppa
Sales $48,180 $61,900
Cost of goods sold 40,150 58,400
Inventory, beginning of period 1,187 4,960
Inventory, end of period 1,387 5,760
a. Determine for both companies (1) theinventory turnover and (2) the number of days' sales in inventory.Round your calculations and answers to one decimal place. Assume365 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 doesElppa Company. Likewise, QT has a number of days' sales ininventory

Answer & Explanation Solved by verified expert

3.8 Ratings (652 Votes)

Answer a QT Inc Average Inventory Beginning Inventory Ending Inventory 2 Average Inventory 1187 1387 2 Average Inventory 1287 Inventory Turnover Cost of Goods Sold Average Inventory See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Inventory AnalysisQT, Inc. and Elppa Computers, Inc. compete with each other inthe personal computer market. QT assembles computers to customerorders, building and delivering a computer within four days of acustomer entering an order online. Elppa, on the other hand, buildscomputers for inventory prior to receiving an order. Thesecomputers are sold from inventory once an order is received.Selected financial information for both companies from recentfinancial statements follows (in millions):QTElppaSales$48,180$61,900Cost of goods sold40,15058,400Inventory, beginning of period1,1874,960Inventory, end of period1,3875,760a. Determine for both companies (1) theinventory turnover and (2) the number of days' sales in inventory.Round your calculations and answers to one decimal place. Assume365 days a year.QTElppa1. Inventory turnover2. Number of days' sales in inventorydaysdaysb. QT has a inventory turnover ratio than doesElppa Company. Likewise, QT has a number of days' sales ininventory

	QT	Elppa
Sales	$48,180	$61,900
Cost of goods sold	40,150	58,400
Inventory, beginning of period	1,187	4,960
Inventory, end of period	1,387	5,760

	QT		Elppa
1. Inventory turnover
2. Number of days' sales in inventory		days		days