Determine for both companies the number of days sales

Assignment Help Financial Accounting
Reference no: EM132745525

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 -

a1. Determine for both companies (1) the inventory turnover and Round to one decimal place.

a2. 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: EM132745525

Questions Cloud

Prepare an income statement in comparative form : Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round to the nearest whole percentage
Short term and long term effects of covid-19 : Discuss some of the short term and long term effects of COVID-19 on business organizations in Bahrain.
Traditional inventory management methods : Think about the transition from traditional inventory management methods to a just-in-time process.
Determine the payback period of the incremental investment : Wendy Li decided to purchase a new Honda Civic. Being concerned about environmental issues she is leaning toward a Honda Civic Hybrid rather than the completely
Determine for both companies the number of days sales : Determine for both companies (2) the number of days' sales in inventory. Interpret the inventory ratios in the context of both companies' operating strategies
Evaluate yourself using the three indices of creativity : Evaluate yourself using the three indices of creativity. What strategies can you use to enhance your creativity?
Organization production function : How your organization's production function is related to its marginal product of labor. How organization's marginal product is related to its demand for labor
What is the impact of the notice on the accounting equation : ABC received a notice that the XYZ company is not able to make the payment for the outstanding accounts receivables due to bankruptcy.
Explain three key principles of quality customer service : 1) Explain how feedback from staff and customers can be used to enhance customer service

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

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