For the current annual reports of Apple and Google, assume they report the following.

Required

1. Compute the recent two years’ raw materials inventory turnover ratio for 

(a) Apple and 

(b) Google. 

2. Is the current year change in Apple’s raw materials inventory turnover ratio favorable or unfavorable? Is the current year change in Google’s raw materials inventory turnover ratio favorable or unfavorable? 

3. For the current year, does raw materials inventory turnover outperform or underperform the industry (assumed) average of 40 for 

(a) Apple 

(b) Google?

Transcribed Image Text:

Apple Google $ millions Current Year 1 Year Ago 2 Years Ago Current Year 1 Year Ago 2 Years Ago Raw materials inventory, ending .. $ 2,100 $ 1,900 $ 2,500 $ 500 $ 700 $ 300 Raw materials used.... 72,000 74,800 79,200 42,000 30,000 27,000