User Account

All Pages

Determine for both companies the inventory turnover

Assignment Help Accounting Basics
Reference no: EM132691645

Problem - 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 computer 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 inventory once an order is received. Selected financial information for both companies from recent financial statements follows (in millions):

 

QT

Elppa

Sales

$56,940

$120,357

Cost of goods sold

44,754

92,385

Inventory, beginning of period

1,382

6,317

Inventory, end of period

1,404

7,490

Required -

a. Determine for both companies (1) the inventory turnover and Round to one decimal place.

a. Determine for both companies (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.

Reference no: EM132691645

Questions Cloud

Determine the ratio of liabilities to stockholders equity : The income before income tax expense was $480,000 and $420,000 for the current and previous years, Determine the ratio of liabilities to stockholders equity
Discuss the steps of consumer buying process for new product : Discuss the steps of the consumer buying process for a new product. Next, identify a new product that you have recently adopted into your daily lifestyle.
What is the crash cost per? period : If an activity whose normal duration is 15 days can be shortened to 11 days for an added cost of? $2,000, what is the crash cost per? period?
Define quality from the? producer and? customer prospective : Consider a University as a production system in which the final product is a graduate. For this? system:
Determine for both companies the inventory turnover : QT, Inc. and Elppa Computers, Inc. compete with each other in the personal computer market. Determine for both companies the inventory turnover
Describe the primary market for the products : Describe the primary market for the products and the type of person who would (in your opinion) typically buy them. Explain what information from self-concepts
What is performance management means : What is performance management means. And how to use it to be more successful in future?
Describe the pressing issues in employee compensation : The first goal is to enable you to think over pressing issues in employee compensation and benefits to help you determine your position on the issue.
Difference between primary key and unique key : What is the difference between the "DELETE" and "TRUNCATE" commands? What is the difference between "Primary Key" and "Unique Key"?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss the arguments for and against this option

The practices of several major museums are illustrated in the practice example Art . . . and Bones, Rocks, Frozen Tissues. Discuss the arguments for and against this option.

  Compute the effective interest rate to the nearest percent

Jeremy is in the process of purchasing a car. The list price of the car is $ 34000. If Jeremy pays cash for the car, the dealer will reduce the price by 10%.

  Make the journal entry at the date of purchase

Culver Corporation purchased a computer on December 31, 2019, for $149,100, paying $42,600 down. Make the journal entry at the date of purchase

  Using the following end of year account balances create a

using the following end of year account balances create a multi-step income statement and a balance sheet with the

  Smith and warren llp has three departments auditing tax and

smith and warren llp has three departments auditing tax and information systems. the departments occupy 2500 square

  Compare trading securities and available for sale securities

Compare and contrast trading securities and available for sale securities. How do above classifications affect the accounting treatment for unrealized losses

  Compute the deferred tax benefit

There were no temporary differences in prior years. The deferred tax benefit to be applied against current income tax expense is

  The credit period begins with what date

Merchandise is ordered on June 13; the merchandise is shipped by the seller and the invoice is prepared, dated, and mailed by the seller on June 16

  What case law is relevant to the issues raised

Whether he return on a cash or accrual basis. Whether particular amounts are ordinary income or statutory income (including capital). Under what sections of the Acts the particular amounts are assessable. How the quiz show winnings are to be treated...

  What is rosenberg break even market share

If 25% of the "over 60" population is hearing impaired, what is Rosenberg's break even market share in 2013

  How much was bravo revenue for the year

No dividends were paid. Expenses incurred during the year were $80,000. How much was Bravo's revenue for the year

  Compute forecast for the week using exponential smoothing

Forecast the demand for the week of October12 using a 3-week moving average. Compute the forecast for the week of October12 using exponential smoothing with a forecast for August 31 of 360

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd