BM Apple Current One YearTwo Years CurrontOneYea Two Years Prior S millions Year
ID: 2553411 • Letter: B
Question
BM Apple Current One YearTwo Years CurrontOneYea Two Years Prior S millions Year Prior Prior Year Prio 40.089 112.258 106,606 3,038 27,078 20.385 1. Compute inventory turnover for each company for the most recent two years shown 2. Compute days sales in inventory for each company for the three years shown 3. Analyze and then discuss your findings from parts 1 änd 2. Assume an industry average for inventory turnover of 15 For this post, you will have to put up your post before you will be able to see the posts of your classmates the cnline library). You Be sure to cite sources for any additional research for your post (go to may want to use a citation engine to help cite your sources bttollwscitet Remember to return to the forum to r should be up by Day 4, and peer replies should be posted by Day 7at 11:3p espond to at least 2 of your classmates. Original postsExplanation / Answer
$ millions
Apple
Microsoft
Current Year
One Year prior
two Years Prior
Current Year
One Year prior
two 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
Inventory Turnover
59.64
53.18
60.43
11.38
10.18
10.52
=Cost of Sales / Inventory
Days Sale in Inventory
6.12
6.86
6.04
32.06
35.86
34.70
= 365 / Inventory Turnover
Industry Average for inventory turnover is 15. It means on an average in the industry the inventory is used 15 times over the period.
The inventory turnover of Apple is above the industry average depicting a regular flow of inventory.
Microsoft has a below average inventory turnover. This shows lack of movability of inventory and that the inventory is stoked up for a longer period of time as confirmed by the Days sale in Inventory Ratio.
$ millions
Apple
Microsoft
Current Year
One Year prior
two Years Prior
Current Year
One Year prior
two 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
Inventory Turnover
59.64
53.18
60.43
11.38
10.18
10.52
=Cost of Sales / Inventory
Days Sale in Inventory
6.12
6.86
6.04
32.06
35.86
34.70
= 365 / Inventory Turnover
Industry Average for inventory turnover is 15. It means on an average in the industry the inventory is used 15 times over the period.
The inventory turnover of Apple is above the industry average depicting a regular flow of inventory.
Microsoft has a below average inventory turnover. This shows lack of movability of inventory and that the inventory is stoked up for a longer period of time as confirmed by the Days sale in Inventory Ratio.
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