Apple and Samsung are competitors in the global marketplace. Apple's and Samsung's financial statements are in Appendix A.

Required

1. Determine the change in Apple's and Samsung's inventories for the most recent year reported. Then identify the impact on net resources generated by operating activities (increase or decrease) for the change in inventory level (increase or decrease) for Apple and Samsung for that same year.

2. How would the move to a just-in-time (JIT) system likely impact future operating cash flows and operating income?

3. Would a move to a JIT system likely impact Apple more than it would Samsung? Explain.