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
2014

Inventory

Turnover
2013

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)

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