Compute inventory turnover for each company for the most recent two years shown. 1 answer below »

Comparative figures for Research In Motion and Apple follow.

 

Research In Motion

Apple

 

 

Current

One Year

Two Years

Current

 One Year

Two Years

($ millions)

Year

Prior

Prior

Year

Prior

Prior

Inventory

$ 622

$ 682

$ 396

$ 455

$ 509

$ 346

Cost of sales

8,369

5,968

2,929

25,683

24,294

16,426

Required

1. Compute inventory turnover for each company for the most recent two years shown.

2. Compute days’ sales in inventory for each company for the three years shown.

3. Comment on and interpret your findings from parts 1 and 2. Assume an industry average for inventory turnover of 10.

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