Calculating Gross Profit and Inventory TurnoverThe following table presents, sales, revenue, cost of goods sold, and inventory for 3 companies: Samsung, HP & Apple.a. Compute the gross profit margin (GPM) for each of these companies for all 3 yearsb. Compute the inventory turnover ratio and the average inventory days outstanding for each company for the last two fiscal year using FIFO inventory costingc. What factors might determine the differences among these 3 companies’ ratios? ($millions) Fiscal year endingSamsung (Korean won) 12/31/2014 12//2013 12/31/2012Revenue 206,205,987 228,692,667 201,103,613COGS 128,278,800 137,696,309 126,651,931Inventory 17,317,504 19,134,868 17,747,413 HP (US Dollar) 10/31/2014 10/31/2013 10/31/2012Revenue (products only) 73,726 72,398 77,887COGS 56,469 55,632 59,468Inventory 6,415 6,046 6,317 Apple (US Dollars) 9/27/2014 9/28/2013 9/29/2012Revenue 182,795 170,910 156,508COGS 112,258 106,606 87,846Inventory 2,111 1,764 791
Calculating Gross Profit and Inventory Turnover
The following table presents, sales, revenue, cost of goods sold, and inventory for 3 companies: Samsung, HP & Apple.
a. Compute the gross profit margin (GPM) for each of these companies for all 3 years
b. Compute the inventory turnover ratio and the average inventory days outstanding for each company for the last two fiscal year using FIFO inventory costing
c. What factors might determine the differences among these 3 companies’ ratios?
($millions) Fiscal year ending
Samsung (Korean won) 12/31/2014 12//2013 12/31/2012
Revenue 206,205,987 228,692,667 201,103,613
COGS 128,278,800 137,696,309 126,651,931
Inventory 17,317,504 19,134,868 17,747,413
HP (US Dollar) 10/31/2014 10/31/2013 10/31/2012
Revenue (products only) 73,726 72,398 77,887
COGS 56,469 55,632 59,468
Inventory 6,415 6,046 6,317
Apple (US Dollars) 9/27/2014 9/28/2013 9/29/2012
Revenue 182,795 170,910 156,508
COGS 112,258 106,606 87,846
Inventory 2,111 1,764 791
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