The following data (in millions) were taken from recent annual reports of Apple

Question

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:

a. Determine the inventory turnover for Apple and Mattel. Round to one decimal place.

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 Ch 07 - Homework Show Me How Inventory Turnover 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, induding Barbie, Hot Wheels@, and Disney Classics: Mattel 140,089 $2,896 Cost of merchandise sold Inventory, end of year Inventory, beginning of the year a. Determine the inventory turnover for Apple and Mattel. Round to one decimal place. Apple 2,349 588 2,111 562 b. Would you expect Mattel's inventory turnover to be higher or lower than Apple's? Lower Feedback Check My Work Previous Next

Explanation / Answer

A) Inventory turnover ratio.

Cost of merchandise sold÷ average inventory

Average inventory= (opening inventory+closing inventory)÷2

Apple= 140089÷((2349+2111)÷2)= 62.8

Mattel=2896÷((588+562)÷2)=5.0

B) Mattel company inventory turnover ratio is lower than apple

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