Question
In: Accounting
alculating Gross Profit and Inventory Turnover The following table presents sales revenue, cost of goods sold,...
alculating Gross Profit and Inventory
Turnover
The following table presents sales revenue, cost of goods sold, and
inventory amounts for three computer/electronics companies, Dell
Inc., Hewlett-Packard Company, and Apple Inc.
| $ millions | Fiscal year ending | ||
|---|---|---|---|
| Samsung Electronics Co. Ltd. (S. Korean won) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
| Revenues | 203,205,987 | 225,692,667 | 198,103,613 |
| Cost of goods sold | 126,278,800 | 135,696,309 | 124,651,931 |
| Inventory | 15,817,504 | 17,634,868 | 16,247,413 |
| Hewlett-Packard Company (US dollar) | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
| Revenues (Products only) | 127,245 | 126,033 | 114,552 |
| Cost of goods sold | 67,167 | 67,064 | 58,503 |
| Inventory | 7,490 | 6,466 | 6,128 |
| Apple Inc. (US dollar) | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 29, 2012 |
| Revenues | 108,249 | 65,225 | 42,905 |
| Cost of goods sold | 66,431 | 41,541 | 27,683 |
| Inventory | 776 | 1,051 | 455 |
Required:
a. Compute the gross profit margin (GPM) for each of these
companies for all three fiscal years.
(Round your answers to one decimal place.)
| 2014 | 2013 | 2012 | |
|---|---|---|---|
| Samsung | Answer% | Answer% | Answer% |
| Hewlett-Packard | Answer% | Answer% | Answer% |
| Apple | Answer% | Answer% | Answer% |
b. Compute the inventory turnover ratio and the average
inventory days outstanding for each company for the last two fiscal
years. (All three firms use FIFO inventory costing.)
(Round your answers to one decimal place.)
|
Inventory Turnover |
Inventory Turnover |
AIDO 2014 |
AIDO 2013 |
|
|---|---|---|---|---|
| Samsung | Answer | Answer | Answer | Answer |
| Hewlett-Packard | Answer | Answer | Answer | Answer |
| Apple | Answer | Answer | Answer | Answer |
Solutions
Expert Solution
| Samsung | |||||
| 2014 | 2013 | 2012 | |||
| Sales revenue | 203205987 | 225692667 | 198103613 | ||
| CoGS | 126278800 | 135696309 | 124651931 | ||
| Inventory | 15817504 | 17634868 | 16247413 | ||
| Gross margin | 76927187 | 89996358 | 73451682 | ||
| (Sales-COGS) | |||||
| Gross Profit Margin | 37.85% | 39.88% | 37.08% | ||
| (Gross profit/Sales)*100 | |||||
| Inventory Turnnover | 7.98 | 7.69 | 7.67 | ||
| (COGS / Inventory) | |||||
| Hewlett | |||||
| 2014 | 2013 | 2012 | |||
| Sales revenue | 127245 | 126033 | 114552 | ||
| CoGS | 67167 | 67064 | 58503 | ||
| Inventory | 7490 | 6466 | 6128 | ||
| Gross margin | 60078 | 58969 | 56049 | ||
| (Sales-COGS) | |||||
| Gross Profit Margin | 47.21% | 46.79% | 48.93% | ||
| (Gross profit/Sales)*100 | |||||
| Inventory Turnnover | 8.97 | 10.37 | 9.55 | ||
| (COGS / Inventory) | |||||
| Apple | |||||
| 2014 | 2013 | 2012 | |||
| Sales revenue | 108249 | 65225 | 42905 | ||
| CoGS | 66431 | 41541 | 27683 | ||
| Inventory | 776 | 1051 | 455 | ||
| Gross margin | 41818 | 23684 | 15222 | ||
| (Sales-COGS) | |||||
| Gross Profit Margin | 38.63% | 36.31% | 35.48% | ||
| (Gross profit/Sales)*100 | |||||
| Inventory Turnnover | 85.61 | 39.53 | 60.84 | ||
| (COGS / Inventory) | |||||
ekkarill92 answered 2 years agoRelated Solutions
Calculating Gross Profit Margin and Inventory Turnover The following table presents sales revenue, cost of goods...
Calculating
Gross Profit Margin and Inventory Turnover
The following table presents sales revenue, cost of goods sold, and
inventory amounts for three retailers of fine jewelry, Tiffany
& Co., Zale Corporation, and Blue Nile, Inc. (an Internet
retailer).
($ millions)
2013
2012
Tiffany & Co.
Revenues
$4,585
$4,017
Cost of goods sold
1,776
1,674
Inventory
2,489
2,347
Zale Corporation
Revenues
$1,973
$1,910
Cost of goods sold
989
949
Inventory
823
769
Blue Nile, Inc.
Revenues
$505
$443
Cost of goods...
Calculating Gross Profit Margin and Inventory Turnover The following table presents sales revenue, cost of goods...
Calculating Gross Profit Margin and Inventory Turnover
The following table presents sales revenue, cost of goods sold, and
inventory amounts for three retailers of fine jewelry, Tiffany
& Co., Zale Corporation, and Blue Nile, Inc. (an Internet
retailer).
($ millions)
2013
2012
Tiffany & Co.
Revenues
$4,231
$3,974
Cost of goods sold
1,766
1,664
Inventory
2,477
2,335
Zale Corporation
Revenues
$1,963
$1,900
Cost of goods sold
979
939
Inventory
813
759
Blue Nile, Inc.
Revenues
$495
$433
Cost of goods...
Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Exercise 6-4A Calculate inventory amounts when costs are rising
(LO6-3)During the year, TRC Corporation has the following inventory
transactions.DateTransactionNumber of UnitsUnit CostTotal CostJan.1Beginning inventory52$44$2,288Apr.7Purchase132466,072Jul.16Purchase202499,898Oct.6Purchase112505,600498$23,858For the entire year, the company sells 432 units of inventory
for $62 each.Exercise 6-4A Part 22. Using LIFO, calculate ending inventory, cost
of goods sold, sales revenue, and gross profit.
1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 60 $ 52 $ 3,120 Apr. 7 Purchase 140 54 7,560 Jul. 16 Purchase 210 57 11,970 Oct. 6 Purchase 120 58 6,960 530 $ 29,610 For the entire year, the company sells 450 units of inventory for $70 each.
1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
2. Using...
Problem 6-2A Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four...
Problem 6-2A Calculate ending inventory, cost of goods sold,
sales revenue, and gross profit for four inventory methods (LO6-3,
6-4, 6-5)
[The following information applies to the questions
displayed below.]
Greg’s Bicycle Shop has the following transactions related to its
top-selling Mongoose mountain bike for the month of March.
Greg's Bicycle Shop uses a periodic inventory system.
Date
Transactions
Units
Unit
Cost
Total Cost
March
1
Beginning inventory
20
$
250
$
5,000
March
5
Sale ($400
each)
15
March...
Problem 6-2A Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four...
Problem 6-2A Calculate ending inventory, cost of goods sold,
sales revenue, and gross profit for four inventory methods (LO6-3,
6-4,6-5) [The following information applies to the questions
displayed below.] Greg’s Bicycle Shop has the following
transactions related to its top-selling Mongoose mountain bike for
the month of March. Greg's Bicycle Shop uses a periodic inventory
system.
Date
Transactions
Units
Unit Cost
Total Cost
March 1
Beginning Inventory
20
$215
$4,300
March 5
Sale ($330 each)
15
March 9
Purchase
10...
Problem 6-2B Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four...
Problem 6-2B Calculate ending inventory, cost of goods sold,
sales revenue, and gross profit for four inventory methods (LO6-3,
6-4, 6-5)
[The following information applies to the questions
displayed below.]
Pete’s Tennis Shop has the following transactions related to its
top-selling Wilson tennis racket for the month of August.
Pete’s Tennis Shop uses a periodic inventory system.
Date
Transactions
Units
Unit Cost
Total Cost
August
1
Beginning inventory
8
$
152
$
1,216
August
4
Sale ($185 each)
5
August...
Required information Problem 6-2B Calculate ending inventory, cost of goods sold, sales revenue, and gross profit...
Required information
Problem 6-2B Calculate ending inventory, cost of goods sold,
sales revenue, and gross profit for four inventory methods (LO6-3,
6-4, 6-5)
[The following information applies to the questions
displayed below.]
Pete’s Tennis Shop has the following transactions related to its
top-selling Wilson tennis racket for the month of August.
Pete’s Tennis Shop uses a periodic inventory system.
Date
Transactions
Units
Unit Cost
Total Cost
August
1
Beginning inventory
8
$
156
$
1,248
August
4
Sale ($205 each)...
Required information Problem 6-2B Calculate ending inventory, cost of goods sold, sales revenue, and gross profit...
Required information
Problem 6-2B Calculate ending inventory, cost of goods sold,
sales revenue, and gross profit for four inventory methods (LO6-3,
6-4, 6-5)
[The following information applies to the questions
displayed below.]
Pete’s Tennis Shop has the following transactions related to its
top-selling Wilson tennis racket for the month of August.
Pete’s Tennis Shop uses a periodic inventory system.
Date
Transactions
Units
Unit Cost
Total Cost
August
1
Beginning inventory
8
$
152
$
1,216
August
4
Sale ($185 each)...
Compute ending inventory, cost of goods sold, and gross profit.
My question: Assume the company uses three inventory pools instead of one. Compute ending inventory, cost of goods sold, and gross profit. (Round price index to 2 decimal places, e.g. 1.45 and final answers to 0 decimal places, e.g. 6,548.)
William’s Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, William adopted dollar-value LIFO and decided to use a single inventory pool. The company’s January 1 inventory consists of:
Category
Quantity
...
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