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Key comparative figures for Apple and Google follow. $ millions Net sales Cost of sales Apple Current Year $ 260,174 161,782 ($ millions) Net sales Cost of sales Gross margin Gross margin ratio Required: 1. Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies. 2. Which company earns more in gross margin for each dollar of net sales for the current year? 3-a. Does the company's current-year gross margin underperform or outperform the 35% industry average in the case of Apple? 3-b. Does the company's current-year gross margin underperform or outperform the 35% industry average in the case of Google? 4-a. Is the change in the company's current-year gross margin favorable or unfavorable for Apple? 4-b. Is the change in the company's current-year gross margin favorable or unfavorable for Google? Current Year $ 260,174 161,782 Prior Year Current Year $ 265,595 $ 161,857 163,756 71,896 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies. Note: Enter your dollar answers in millions. Round your percentage answers to 1 decimal place. Apple Google % Google Prior Year $ 265,595 163,756 Prior Year $ 136,819 59,549 % < Required 1 Current Year $ 161,857 71,896 Prior Year $ 136,819 59,549 Required 2 > %

Key comparative figures for Apple and Google follow. $ millions Net sales Cost of sales Apple Current Year $ 260,174 161,782 ($ millions) Net sales Cost of sales Gross margin Gross margin ratio Required: 1. Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies. 2. Which company earns more in gross margin for each dollar of net sales for the current year? 3-a. Does the company's current-year gross margin underperform or outperform the 35% industry average in the case of Apple? 3-b. Does the company's current-year gross margin underperform or outperform the 35% industry average in the case of Google? 4-a. Is the change in the company's current-year gross margin favorable or unfavorable for Apple? 4-b. Is the change in the company's current-year gross margin favorable or unfavorable for Google? Current Year $ 260,174 161,782 Prior Year Current Year $ 265,595 $ 161,857 163,756 71,896 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies. Note: Enter your dollar answers in millions. Round your percentage answers to 1 decimal place. Apple Google % Google Prior Year $ 265,595 163,756 Prior Year $ 136,819 59,549 % < Required 1 Current Year $ 161,857 71,896 Prior Year $ 136,819 59,549 Required 2 > %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Key comparative figures for Apple and Google follow. $ millions Net sales Cost of sales Apple Current Year $ 260,174 161,782 ($ millions) Net sales Cost of sales Gross margin Gross margin ratio Required: 1. Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies. 2. Which company earns more in gross margin for each dollar of net sales for the current year? 3-a. Does the company's current-year gross margin underperform or outperform the 35% industry average in the case of Apple? 3-b. Does the company's current-year gross margin underperform or outperform the 35% industry average in the case of Google? 4-a. Is the change in the company's current-year gross margin favorable or unfavorable for Apple? 4-b. Is the change in the company's current-year gross margin favorable or unfavorable for Google? Current Year $ 260,174 161,782 Prior Year Current Year $ 265,595 $ 161,857 163,756 71,896 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies. Note: Enter your dollar answers in millions. Round your percentage answers to 1 decimal place. Apple Google % Google Prior Year $ 265,595 163,756 Prior Year $ 136,819 59,549 % < Required 1 Current Year $ 161,857 71,896 Prior Year $ 136,819 59,549 Required 2 > %
Transcribed Image Text:Key comparative figures for Apple and Google follow. $ millions Net sales Cost of sales Apple Current Year $ 260,174 161,782 ($ millions) Net sales Cost of sales Gross margin Gross margin ratio Required: 1. Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies. 2. Which company earns more in gross margin for each dollar of net sales for the current year? 3-a. Does the company's current-year gross margin underperform or outperform the 35% industry average in the case of Apple? 3-b. Does the company's current-year gross margin underperform or outperform the 35% industry average in the case of Google? 4-a. Is the change in the company's current-year gross margin favorable or unfavorable for Apple? 4-b. Is the change in the company's current-year gross margin favorable or unfavorable for Google? Current Year $ 260,174 161,782 Prior Year Current Year $ 265,595 $ 161,857 163,756 71,896 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies. Note: Enter your dollar answers in millions. Round your percentage answers to 1 decimal place. Apple Google % Google Prior Year $ 265,595 163,756 Prior Year $ 136,819 59,549 % < Required 1 Current Year $ 161,857 71,896 Prior Year $ 136,819 59,549 Required 2 > %
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