The following information was summarized from the fiscal year 20

The following information was summarized from the fiscal year 2008 annual report of Apple Computer, Inc.:
(in millions)
Cost of sales for the year ended:
September 27, 2008 $21,334
September 29, 2007 15,852
Inventories:
September 27, 2008 509
September 29, 2007 346
Net sales for the year ended:
September 27, 2008 32,479
September 29, 2007 24,006
The following information was summarized from the fiscal year 2008 annual report of
Hewlett-Packard Company:
(in millions)
Cost of sales* for the year ended:
October 31, 2008 $69,342
October 31, 2007 63,435
Inventory:
October 31, 2008 7,879
October 31, 2007 8,033
Net revenue (products) for the year ended:
October 31, 2008 91,697
October 31, 2007 84,229
*Described as “cost of products” by Hewlett-Packard:
Required
1. Calculate the gross profit ratios for Apple Computer and Hewlett-Packard for each of the two years presented.
2. Calculate the inventory turnover ratios for both companies for the most recent year.
3. Which company appears to be performing better? What other information should you consider to determine how these companies are performing in this regard?

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally.    Inventory Turnover Ratio FormulaWhere,...

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