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The following financial information is taken from the annual report (amounts in millions) Year 2 Year 1 Net revenues Cost of goods sold Ending inventories $39,826 $35,209 16,277 14,963 3,126 2,621 Using the above data, calculate the company's inventory turnover, inventory-on-hand period, and gross profit percentage for Year 1 and Year 2. Round all answers to nearest one decimal place. Year 2 Year 1 Inventory turnover Inventory-on-hand period 63.9 Gross profit percentage 59.1 % 57.5 % Is the company's inventory management improving? Intel's inventory management effectiveness declined. + Intel uses FIFO to value its inventory. Would these ratios look better if the company used LIFO instead? Yes, Intel's inventory management would have looked somewhat better if the company had used LIFO instead of FIFO to value its inventory

The following financial information is taken from the annual report (amounts in millions) Year 2 Year 1 Net revenues Cost of goods sold Ending inventories $39,826 $35,209 16,277 14,963 3,126 2,621 Using the above data, calculate the company's inventory turnover, inventory-on-hand period, and gross profit percentage for Year 1 and Year 2. Round all answers to nearest one decimal place. Year 2 Year 1 Inventory turnover Inventory-on-hand period 63.9 Gross profit percentage 59.1 % 57.5 % Is the company's inventory management improving? Intel's inventory management effectiveness declined. + Intel uses FIFO to value its inventory. Would these ratios look better if the company used LIFO instead? Yes, Intel's inventory management would have looked somewhat better if the company had used LIFO instead of FIFO to value its inventory

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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The following financial information is taken from the annual report of Intel Corporation: (amounts in millions) Year 2 Year 1 Net revenues $39,826 $35,209 Cost of goods sold Ending inventories 16,277 14,963 3,126 2,621 Using the above data, calculate the company's inventory turnover, inventory-on-hand period, and gross profit percentage for Year 1 and Year 2. Round all answers to nearest one decimal place. Inventory turnover Inventory-on-hand period Gross profit percentage Year 2 Year 1 63.9 59.1 % 57.5 % Is the company's inventory management improving? Intel's inventory management effectiveness declined. Intel uses FIFO to value its inventory. Would these ratios look better if the company used LIFO instead? Yes, Intel's inventory management would have looked somewhat better if the company had used LIFO instead of FIFO to value its inventory.
Transcribed Image Text:The following financial information is taken from the annual report of Intel Corporation: (amounts in millions) Year 2 Year 1 Net revenues $39,826 $35,209 Cost of goods sold Ending inventories 16,277 14,963 3,126 2,621 Using the above data, calculate the company's inventory turnover, inventory-on-hand period, and gross profit percentage for Year 1 and Year 2. Round all answers to nearest one decimal place. Inventory turnover Inventory-on-hand period Gross profit percentage Year 2 Year 1 63.9 59.1 % 57.5 % Is the company's inventory management improving? Intel's inventory management effectiveness declined. Intel uses FIFO to value its inventory. Would these ratios look better if the company used LIFO instead? Yes, Intel's inventory management would have looked somewhat better if the company had used LIFO instead of FIFO to value its inventory.
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