Financial information for Bell and Gangway (two computers manufactures) follows: Required a. Compare Bell and Gangway in
Question:
Financial information for Bell and Gangway (two computers manufactures) follows:
Required
a. Compare Bell and Gangway in terms of their percentage changes in sales and gross margin.
b. Compare Bell and Gangway in terms of their gross margin percentages.
c. Compare Bell and Gangway in terms of inventory turnover and days ‘sales in inventory
d. In your opinion, which ï¬rm has had better financial performance? Support your answer using your calculations in parts a, b, andc.
Bell 12/31/2011 12/31/2010 Gangway in millions) Sales Cost of sales Gross margin Inventory 12/31/2011 $8,922 7,316 $1,606 400 12/31/2010 $8,457 6,951 $1,506 351 $61,133 $57,420 47,904 $ 9,516 660 49462 $11,671 $ 1,180
Step by Step Answer:
a Bell Gangway Percentage change in sales 65 55 Percentage change in gross margin 2...View the full answer
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Managerial Accounting questions
-
Financial information for Bell and Gangway (two computer manufacturers) follows: Required a. Compare Bell and Gangway in terms of their percentage changes in sales and gross margin. b. Compare Bell...
-
Compare the two managers in terms of their influence on employee attitudes, short-term performance, and long-term plant performance?
-
Compare Intels and Microsofts Strategies in terms of their ability to profit from innovation. Next, analyze the manner in which shifts in new technologies revolutionized the structure of the...
-
50 successes in 200 trials when p = 0.2. For the binomial experiments find the normal approximation for the probability of
-
a) What is extraterritoriality? b) What does the Court typically apply to discern whether an Act of Congress regulating conduct applies abroad? c) What does the presumption of extraterritoriality...
-
Joints of high quality can be formed by friction welding. Consider the friction welding of two 4O-mm-diameter Inconel rods. The bottom rod is stationary, while the top rod is forced into a...
-
Reconsider Example 10.9. Build Simulink block diagrams to simulate open and closed-loop control with parameter variations. Verify the steady-state response values \(y_{\mathrm{ss}}\) obtained in...
-
Power Corporation acquired 100 percent ownership of Upland Products Company on January 1, 20X1, for $200,000. On that date, Upland reported retained earnings of $50,000 and had $100,000 of common...
-
Your client, who is 25 years old, just inherited $10mil and wants to growth his/her wealth over the next 10-20 years to $1 Billion. 1) Recommend portfolio allocations among the different asset...
-
Describe three high-contact service operations and three low-contact service operations. Do the concepts of intangibility and unstorability have different implications for low- and high-contact...
-
A long is a West Coast company with more than 400 drug stores. Financial information for fiscal 2011 and 2010 follows. An excerpt from management discussion and analysis (MD&A) in the fiscal 2011...
-
Below is an excerpt from Bells Management Discussion and Analysis from its 10K for the year ended 12/31/2011: Gross margin as a percentage of net revenue improved slightly to 19.1% during fiscal...
-
I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: I Love My Chocolate Company...
-
How does IESBA support the development of high-quality ethical standards worldwide?
-
How does the G20 influence international standard setting in accounting and auditing?
-
How effectively does the International Integrated Reporting Council achieve its stated mission?
-
Why might users of accounts be interested in classifications of accounting systems?
-
Due to a strike by truckers, trade in food between the United States and Mexico is halted. In autarky, the price of Mexican grapes is lower than that of U.S. grapes. Using a diagram of the U.S....
-
Many observers of todays high-stakes, high-technology world argue that the worlds largest manufacturer of microprocessors, Intel, is a monopoly. They point out that to compete effectively with Intel,...
-
A superior criticized a sales manager for selling high-revenue, low-profit items instead of lower-revenue but higher-profit items. The sales manager responded, My income is based on commissions that...
-
Define each of the following terms: a. Production opportunities; time preferences for consumption; risk; inflation b. Real risk-free rate of interest, r*; nominal (quoted) risk-free rate of interest,...
-
Flight Caf is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The companys planning budget for July appears below: In July, 17,800 meals were...
-
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The companys flexible budget for August appears below: The actual...
-
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The companys flexible budget for August appears below: The actual...
-
(5 pts) Q4. What is displayed by the program fragment below? #include int main() { int a 3, b = 9; int *pa, *pb, *pc; pa = &a; pb = &pb; pc = pa; pa = pb; pb = pc; printf("%4d 4d 4d 4d %4d ", a, b,...
-
Using the Kosaraju's algorithm, find the strong components of the following directed graph. Please show your work.
-
Imagine your client would like to complete a tax inversion, acquiring a foreign company in Switzerland and moving the domicile of the combined company overseas. Your client believes that this will...
Study smarter with the SolutionInn App