The following data (in millions) were taken from recent annual reports of Apple Inc., a manufacturer of personal computers and related products, and Mattel Inc., a manufacturer of toys, including Barbie®, Hot Wheels®, and Disney Classics: Apple Mattel Cost of merchandise sold $140,089 $2,896 Inventory, end of year 2,349 588 Inventory, beginning of the year 2,111 562 a. Determine the inventory turnover for Apple and Mattel. Round to one decimal place. Apple Mattel b. Would you expect Mattel’s inventory turnover to be higher or lower than Apple’s?
The following data (in millions) were taken from recent annual reports of Apple Inc., a manufacturer of personal computers and related products, and Mattel Inc., a manufacturer of toys, including Barbie®, Hot Wheels®, and Disney Classics: Apple Mattel Cost of merchandise sold $140,089 $2,896 Inventory, end of year 2,349 588 Inventory, beginning of the year 2,111 562 a. Determine the inventory turnover for Apple and Mattel. Round to one decimal place. Apple Mattel b. Would you expect Mattel’s inventory turnover to be higher or lower than Apple’s?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following data (in millions) were taken from recent annual reports of Apple Inc., a manufacturer of personal computers and related products, and Mattel Inc., a manufacturer of toys, including Barbie®, Hot Wheels®, and Disney Classics:
| Apple | Mattel | |||
| Cost of merchandise sold | $140,089 | $2,896 | ||
| Inventory, end of year | 2,349 | 588 | ||
| Inventory, beginning of the year | 2,111 | 562 |
a. Determine the inventory turnover for Apple and Mattel. Round to one decimal place.
| Apple | |
| Mattel |
b. Would you expect Mattel’s inventory turnover to be higher or lower than Apple’s?
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