Apple's and Google's income statements in Appendix A both show increasing sales and cost of sales. The

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Apple's and Google's income statements in Appendix A both show increasing sales and cost of sales. The gross margin ratio can be used to analyze how well companies control costs as sales increase.

Required

1. Compute the gross margin ratio for Apple for each of the three most recent years.

2. Compute the gross margin ratio for Google for each of the three most recent years.

3. Do your computed gross margin ratios indicate good cost control for each company? Explain.


Apple's financial statements in Appendix A
 Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par va

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Google's financial statements from Appendix A.


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Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Managerial Accounting

ISBN: 9781259726972

6th Edition

Authors: John Wild, Ken Shaw

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