Question

Calculating Gross Profit and Inventory Turnover The following table presents sales revenue, cost of goods sold, and inventory amounts for three computer/electronics companies, Samsung Electronics Co., Hewlett-Packard Company, and Apple Inc. Fiscal year ending Dec. 31, 2013 228,692,667 $ millions Samsung Electronics Co. Ltd.(S. Korean won) Dec. 31, 2014 Dec. 31, 2012 Revenues Cost of goods sold Inventory 206,205,987 201,103,613 28,278,800 137,696,309 126,651,93 7,317,504 19,134,868 17,747,413 Oct. 31, 2014 oct. 31, 2013 Oct. 31, 2012 77,887 59,468 6,317 Sep. 27, 2014 Sep. 28, 2013 Sep. 29, 2012 156,508 87,846 791 Hewlett-Packard Company (US dollar) Revenues (Products only) Cost of goods sold Inventory 73,726 56,469 6,415 72,398 55,632 6,046 Apple Inc. (US dollar) 182,795 170, Revenues Cost of goods sold Inventory 112,258 106,606 2,111 1,764

Part B

Answer 1

Ans:

Part B :

Samsung
	2014	2013		2014	2013
Inventory	17317504	19134868	Average inventory days	Total days in the period/ Inventory turnover ration	Total days in the period/ Inventory turnover ration
Cost of goods sold	128278800	137696309	Total Number of days	365	365
Inventory turnover ratio	Cost of goods sold/Inventory	Cost of goods sold/Inventory	Average inventory days	365/7.4	365/7.2
Inventory turnover ratio	7.4	7.2	Average inventory days	49.3	50.7
Hewlett Packard
Inventory	6415	6046	Average inventory days	Total days in the period/ Inventory turnover ration	Total days in the period/ Inventory turnover ration
Cost of goods sold	56469	55632	Total Number of days	365	365
Inventory turnover ratio	Cost of goods sold/Inventory	Cost of goods sold/Inventory	Average inventory days	365/8.8	365/9.2
Inventory turnover ratio	8.8	9.2	Average inventory days	41.5	39.7
Apple
Inventory	2111	1764	Average inventory days	Total days in the period/ Inventory turnover ration	Total days in the period/ Inventory turnover ration
Cost of goods sold	112258	106606	Total Number of days	365	365
Inventory turnover ratio	Cost of goods sold/Inventory	Cost of goods sold/Inventory	Average inventory days	365/53.2	365/60.4
Inventory turnover ratio	53.2	60.4	Average inventory days	6.9	6.0