Purchase Solution

Sales Revenue, Costs of Goods Sold, and Inventory Amounts

Not what you're looking for?

Ask Custom Question

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
Dell Inc. Jan. 30, 2009 Feb. 1, 2008 Feb. 2, 2007
Revenues $61,101 $61, 133 $57,420
Cost of goods sold 50,144 49,462 47,904
Inventory 867 1,180 660

Hewlett-Packard Oct. 31, 2008 Oct. 31, 2007 Oct. 31, 2006
Revenues (products Only) $91,697 $84,229 $73,557
Cost of goods sold 69,342 63,435 55,248
Inventory 7,879 8,033 7,750

Apple Inc. Sep. 28, 2008 Sep. 29, 2007 Sep. 30, 2006
Revenues $32,479 $24,006 $19,315
Cost of goods sold 21,334 15,852 13,717
Inventory 509 346 270

a. Compute the gross profit margin (GPM) for each of these companies for fiscal years 2008, 2007, and 2006.

b. Compute the inventory turnover ratios for fiscal years 2008 and 2007. (All three firms use FIFO inventory costing)

c. What factors might determine the differences among these companies' ratios?

Purchase this Solution

Solution Summary

The sales revenues, costs of goods sold and inventory amounts are determined. Hewlett-Packard Company and Apple Inc are analyzed.

Solution Preview

Below is the tutorial. Please don't hesitate to ask/message me for any clarification.

Gross profit margin = (Revenues - Cost of goods sold)/Revenues
Inventory turnover ratio = Cost of goods sold/Inventory

2009 2008 2007
Gross profit ...

Purchase this Solution


Free BrainMass Quizzes
Learning Lean

This quiz will help you understand the basic concepts of Lean.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.