Given information in table A, how much is the advantage of Dell computer compared to Apple Computer, Compaq Computer and IBM in 1995 in terms of savings through inventory? Table A Days Supply of Inventory (DSI)a1993b1994b1995bDell Computer553332Apple Computer528554Compaq Computer726073IBM645748Source: Dell Computer Corporation Fiscal 1993-1995 Annual Reports; case writer estimates from Apple Computer, CompaqComputer, and IBM Fiscal 1992-1994 Annual Reports.a DSI = (Net Ending Inventory)/(Quarterly COGS/90 Days)ÞDell's fiscal calendar ends in January; Apple's in September; Compaq and IBM's in December. The DSI for 1995 representsDell's DSI for the quarter ended on 1/29/95, Apple's on 9/30/94, and Compaq's and IBM's on 12/31/94.

Inventory: Inventory refers to the current asset of the business entity that reports the goods held…

Answered: Given information in table A, how much…

Given information in table A, how much is the advantage of Dell computer compared to Apple Computer, Compaq Computer and IBM in 1995 in terms of savings through inventory?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

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Given information in table A, how much is the advantage of Dell computer compared to Apple Computer, Compaq Computer and IBM in 1995 in terms of savings through inventory?

Table A Days Supply of Inventory (DSI)a
1993b
1994b
1995b
Dell Computer
55
33
32
Apple Computer
52
85
54
Compaq Computer
72
60
73
IBM
64
57
48
Source: Dell Computer Corporation Fiscal 1993-1995 Annual Reports; case writer estimates from Apple Computer, Compaq
Computer, and IBM Fiscal 1992-1994 Annual Reports.
a DSI = (Net Ending Inventory)/(Quarterly COGS/90 Days)
ÞDell's fiscal calendar ends in January; Apple's in September; Compaq and IBM's in December. The DSI for 1995 represents
Dell's DSI for the quarter ended on 1/29/95, Apple's on 9/30/94, and Compaq's and IBM's on 12/31/94.

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