Comparative figures for Apple and Google follow. $ millions Inventory Cost of sales Current Year $ 4,106 161,782 Apple One Year Prior $ 3,956 163,756 Two Years Prior $ 4,855 141,048 Current Year $ 999 $ 1,107 Google One Year Prior Two Years Prior $ 749 71,896 59,549 45,583 Required: 1. Compute inventory turnover for each company for the most recent two years shown. 2. Compute days' sales in inventory for each company for the three years shown. 3. Did the current year inventory turnover underperform or outperform the industry's average turnover of 15 in the case of (a) Apple and (b) Google?
Comparative figures for Apple and Google follow. $ millions Inventory Cost of sales Current Year $ 4,106 161,782 Apple One Year Prior $ 3,956 163,756 Two Years Prior $ 4,855 141,048 Current Year $ 999 $ 1,107 Google One Year Prior Two Years Prior $ 749 71,896 59,549 45,583 Required: 1. Compute inventory turnover for each company for the most recent two years shown. 2. Compute days' sales in inventory for each company for the three years shown. 3. Did the current year inventory turnover underperform or outperform the industry's average turnover of 15 in the case of (a) Apple and (b) Google?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Comparative figures for Apple and Google follow.
$ millions
Inventory
Cost of sales
Current Year
$ 4,106
161,782
Apple
One Year
Prior
$ 3,956
163,756
Two Years
Prior
$ 4,855
141,048
Current
Year
$ 999
$ 1,107
Google
One Year
Prior
Two Years
Prior
$ 749
71,896
59,549
45,583
Required:
1. Compute inventory turnover for each company for the most recent two years shown.
2. Compute days' sales in inventory for each company for the three years shown.
3. Did the current year inventory turnover underperform or outperform the industry's average turnover of 15 in the case of (a) Apple
and (b) Google?
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