Inventory Turnover for Apple Computer and Hewlett-Packard The following information was summarized from the 2006 annual report of Apple Computer, Inc.:

The following information was summarized from the fiscal year 2006 annual report of Hewlett-
Packard Company:

Required 1. Calculate the gross profit ratios for Apple Computer and Hewlett-Packard for each of the two years presented.
2. Calculate the inventory turnover ratios for both companies for the most recent year.
3. Which company appears to be performing better? What other information should you consider to determine how these companies are performing in this regard?

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(in millions) Cost of sales for the year ended: September 30, 2006 September 24, 2005 (as restated) Inventories: September 30, 2006 September 24, 2005 (as restated) Net sales for the year ended: September 30, 2006 September 24, 2005 (as restated) $13,717 9,889 $ 270 165 19,315 13,931