Computing and Evaluating Inventory and PPE Turnovers Intel Corporation reports the following financial statement amounts in its 10-K reports. Cost of $ millions Sales Goods Sold Inventories 2016 $95,019 $24,501 $5,553 2017 100,418 25,096 6,983 2018 113,357 29,162 7,253 a. Compute the inventory and PPE turnover ratios for both 2017 and 2018. Note: Do not round until your final answer. Note: Round your final answers to one decimal place (for example, enter 6.8 for 6.77555). Inventory turnover PPE turnover 2017 Inventory turnover PPE turnover Plant, Property and Equipment, Net $36,171 41,109 48,976 2018 b. What changes are evident in the turnover rates of Intel for these years? 4 <

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.