Part B

Calculating Gross Profit and Inventory Turnover The following table presents sales revenue, cost of goods sold, and inventory amounts for three computer/electronics companies, Samsung Electronics Co., Hewlett-Packard Company, and Apple Inc. Fiscal year ending Dec. 31, 2013 228,692,667 $ millions Samsung Electronics Co. Ltd.(S. Korean won) Dec. 31, 2014 Dec. 31, 2012 Revenues Cost of goods sold Inventory 206,205,987 201,103,613 28,278,800 137,696,309 126,651,93 7,317,504 19,134,868 17,747,413 Oct. 31, 2014 oct. 31, 2013 Oct. 31, 2012 77,887 59,468 6,317 Sep. 27, 2014 Sep. 28, 2013 Sep. 29, 2012 156,508 87,846 791 Hewlett-Packard Company (US dollar) Revenues (Products only) Cost of goods sold Inventory 73,726 56,469 6,415 72,398 55,632 6,046 Apple Inc. (US dollar) 182,795 170, Revenues Cost of goods sold Inventory 112,258 106,606 2,111 1,764 9 The Following Table , man.edu/webapps/blackboard/content/contentWrapper.jsp?course_id _46700 1&displayName-my Required a. Compute the gross profit margin (GPM) for each of these companies for all three fiscal years (Round your answers to one decimal place.) 2013 39.8 % 23.2 % 2014 2012 Samsung 37.8 % Hewlett-Packard 23.4 % 23.6 % Apple 38.6 % 43.9 % b. Compute the inventory turnover ratio and the average inventory days outstanding for each company for the last two fiscal years. (All three firms use FIFO inventory costing) Do not round until your final answers. Round answers to one decimal place. Turnover 2014 Inventory Turnover 2013 AIDO AIDO 2013 2014 51.4 X 39.7 x 62 7.5 58 x Hewlett-Packard 9.1 40X Apple 57.9 834 43 X F3