Q2. The following table presents sales revenue, cost of goods sold, and inventory amounts for the three electronic companies, Samsung Electronics Co., Hewlett-Packard Company, and Apple Inc. $ Millions Fiscal year ending Dec. 31, 2014 Dec. 31, 2013 Dec. 31, 2012 Samsung Electronic Revenue $ 206,205,987 $ 228,692,667 $ 210,103,613 cost of goods sold $ 128,278,800 $ 137,696,309 $ 126,651,931 Inventory $ 17,317,504 $ 19,134,868 $ 17,747,413 Hewlett-Packard Company Oct. 31, 2014 Oct. 31, 2013 Octo. 31, 2012 Revenue (Products only) $73,7260 $ 72,398 $ 77,887 Cost of goods sold $56,469 $ 55,632 $ 59,468 Inventory $ 6,415 $ 6,046 $ 6,317 Apple Inc. (US Dollar) Sept. 27, 2014 Sept. 28, 2013 Sept. 29, 2012 Revenue $ 182,795 $ 170,910 $156,508 cost of goods sold $ 112,258 $ 106,606 $87,846 Inventory $ 2,111 $ 1,764 $ 791 Compute the gross profit margin (GPM) for each of these companies for all three fiscal years. Explain your answer. Compute the inventory turnover ratio and the average inventory days outstanding for each company for the last two fiscal years. Explain your answer. (All three forms use FIFO inventory costing)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Q2. The following table presents sales revenue, cost of goods sold, and inventory amounts for the three electronic companies, Samsung Electronics Co., Hewlett-Packard Company, and Apple Inc.

$ Millions		Fiscal year ending
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Samsung Electronic
Revenue	$ 206,205,987	$ 228,692,667	$ 210,103,613
cost of goods sold	$ 128,278,800	$ 137,696,309	$ 126,651,931
Inventory	$ 17,317,504	$ 19,134,868	$ 17,747,413

Hewlett-Packard Company	Oct. 31, 2014	Oct. 31, 2013	Octo. 31, 2012
Revenue (Products only)	$73,7260	$ 72,398	$ 77,887
Cost of goods sold	$56,469	$ 55,632	$ 59,468
Inventory	$ 6,415	$ 6,046	$ 6,317

Apple Inc. (US Dollar)	Sept. 27, 2014	Sept. 28, 2013	Sept. 29, 2012
Revenue	$ 182,795	$ 170,910	$156,508
cost of goods sold	$ 112,258	$ 106,606	$87,846
Inventory	$ 2,111	$ 1,764	$ 791

Compute the gross profit margin (GPM) for each of these companies for all three fiscal years. Explain your answer.
Compute the inventory turnover ratio and the average inventory days outstanding for each company for the last two fiscal years. Explain your answer. (All three forms use FIFO inventory costing)

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