Accounts Receivable and Inventory Turnover

The following data (in millions) were adapted from recent financial statements of Apple Inc. (AAPL).

	Year 2			Year 1
Sales		$229,234			$215,639
Cost of goods sold		141,048			131,376
Operating income		61,344			60,024
Average net accounts receivable		16,814			14,802
Average inventory		3,494			2,241

1. Compute the accounts receivable turnover for Years 1 and 2. Round to one decimal place

Accounts Receivable Turnover Year 2 Year 1 2. Compute days' sales in receivables for Years 1 and 2. Assume there are 365 days in a year, and round to nearest day. Number of Days' Sales in Receivables Year 2 days Year 1 days 3. Compute the inventory turnover for Years 1 and 2. Round to one decimal place. Inventory Turnover Year 2 Year 1 4. Compute days' sales in inventory for Years 1 and 2. Assume there are 365 days in a year, and round to nearest day. 4. Compute days' sales in inventory for Years 1 and 2. Assume there are 365 days in a year, and round to nearest day. Number of Days' Sales in Inventory Year 2 days Year 1 days 5. Compute the return on sales for Years 1 and 2. Round to one decimal place. Return on Sales Year 2 % Year 1 %