1. Microsoft Corporation (Microsoft) and Oracle Corporation (Oracle) engage in the design, manufacture, and sale of computer software. Microsoft sells and licenses a wide range of systems and application software to businesses, computer hardware manufacturers, and consumer retailers. Oracle sells software for information management almost exclusively to businesses. The table below presents selected data for the two firms for three recent years. Year 3 Year 2 Year 1 Microsoft Sales $58,437 $60,420 $51,122 Average accounts receivable 12 391 12,464 10.327 Change in sales from previous year (3.3)% 18.2% 15.5% Oracle Sales $23,252 $22,430 $17.996 4,430 5,799 4,589 Average accounts receivable Change in sales from previous year 3.79% 24.6% 25.2% REQUIRED a Calculate the accounts receivable turnover ratio for Microsoft and Oracle for Year 1. Year 2, and Year 3. b. Suggest possible reasons for the differences in the accounts receivable turnovers of Microsoft and Oracle during the three-year period. c. Suggest possible reasons for the trends in the accounts receivable turnover for the two firms over the three-year period 2. Dell produces computers and related equipment on a made-to-order basis for consumers and busi- nesses. Sun Microsystems designs and manufactures higher-end computers that function as servers and for use in computer-aided design Sun Microsystems sells primarily to businesses. It also provides services to business customers in addition to product sales of computers. Selected data for each firm for three recent years appear in the table below. (Dell's fiscal year-end is in January, Sun's fiscal year-end is in June. Subsequently, in 2010, Oracle acquired Sun.) Year 3 Year 2 Year 1 Dell Cost of goods sold $49,375 $48,855 $47,433 Average inventories 1,024 920 618 Change in sales from previous year 1.1% 3.0% 4.1% Sun Microsystems Cost of goods sold $5.948 $6.639 $6,778 Average inventories 623 602 532 Change in sales from previous year (10.4)% (2.1)% 3.7% REQUIRED a Calculate the inventory turnover ratio for each firm for the three years. b. Suggest reasons for the differences in the inventory turnover ratios of these two firms. c. Suggest reasons for the trends in the inventory turnover ratios during the three-year period