The following information was summarized from the fiscal year 2010 annual report of Apple Computer, Inc.: (in

Question:

The following information was summarized from the fiscal year 2010 annual report of Apple Computer, Inc.:
(in millions)
Cost of sales for the year ended:
September 25, 2010................................$39,541
September 26, 2009.................................25,683
Inventories:
September 25, 2010...................................1,051
September 26, 2009.....................................455
Net sales for the year ended:
September 25, 2010.................................65,225
September 26, 2009.................................42,905
The following information was summarized from the fiscal year 2010 annual report of Hewlett-Packard Company:
(in millions)
Cost of sales* for the year ended:
October 31, 2010...................................$65,064
October 31, 2009....................................56,503
Inventory:
October 31, 2010......................................6,466
October 31, 2009......................................6,128
Net revenue (products) for the year ended:
October 31, 2010....................................84,799
October 31, 2009....................................74,051
*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 s 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,...