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Q.2BTN_1

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Financial & Managerial Accounting
Found in: Page 273
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

Question: BTN 5-2 Comparative figures for Apple and Microsoft follow

$ millionAppleMicrosoft
Current yearOne year PriorTwo years priorCurrent yearOne year PriorTwo years prior

Inventory

$2,349

$2,111

$1,764

$2,902

$2,660

$1,938

Cost of Sales

140,089

112,258

106,606

33,038

27,078

20,385

Required

1. Compute inventory turnover for each company for the most recent two years shown.

Answer

Company

Current Year

One Year Prior

Apple Company

62.82 times

57.94 times

Microsoft Company

11.87 times

11.77 times

See the step by step solution

Step by Step Solution

Step 1: Definition of Financial Analysis

Financial analysis can be defined as assessing all the financial transactions of the business entity and their financial statements to evaluate their performance.

Step 2: Calculation of Inventory turnover Ratio of Apple Company

Current year:

One year Prior:

Step 2: Calculation of Inventory turnover Ratio of Microsoft Company

Current year:

One year Prior:

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