Selected Recent Balance Sheet and Income Statement Information from Hats

Selected recent balance sheet and income statement information from Hats Co. and Gloves, Inc. follows:
$$\begin{array} { l r r } \text { (\$ millions) } & \text { Hats Co. } & \text { Gloves, Inc. } \\\hline \text { Sales } & \$ 7,230 & \$ 11,305 \\\text { Cost of goods sold } & \mathbf { 2 , 9 1 9 } & \mathbf { 3 } , 178 \\\text { Average accounts receivable } & 77 & 485 \\\text { Average irventory } & 770 & 1,449 \\\text { Average total assets } & 4,190 & 10,827\end{array}$$ a. Compute the following turnover rates for each company:
1. Accounts receivable turnover
2. Inventory turnover
3. Asset turnover
b. Interpret and comment on any differences you observe between the turnover rates for these two companies