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.