Dell Corporation and Apple Inc. reported the following information in their 2009 annual financial statements ($ in
Question:
Dell Corporation and Apple Inc. reported the following information in their 2009 annual financial statements ($ in millions):
Dell Corporation ....................2009............ 2008
Net sales ..................................$61,101......... $61,133
Net income ..........................2,478............ 2,947
Total assets .........................26,500.......... 27,561
Apple Inc. .........................2009.......... 2008
Net sales ........................$36,537...... $32,479
Net income ........................5,704 .........4,834
Total assets .......................53,581 .......39,572
Required:
1. Calculate Dell's return on assets, profit margin, and asset turnover ratio for 2009.
2. Calculate Apple's return on assets, profit margin, and asset turnover ratio for 2009.
3. Which company has the higher profit margin and which company has the higher asset turnover? Is this consistent with the primary business strategies of these two companies?
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Step by Step Answer:
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann