vi.3 The following financial information is taken from the annual report of Intel Corporation:(amounts in millions) Year 2 Year 1Net revenues$39,826 $35,209Cost of goods soldEnding inventories16,277 14,9633,126 2,621Using the above data, calculate the company's inventory turnover, inventory-on-hand period, and gross profit percentage for Year 1 andYear 2.Round all answers to nearest one decimal place.Inventory turnoverInventory-on-hand periodGross profit percentageYear 2Year 163.959.1 %57.5 %Is the company's inventory management improving?Intel's inventory management effectiveness declined.Intel uses FIFO to value its inventory. Would these ratios look better if the company used LIFO instead?Yes, Intel's inventory management would have looked somewhat better if the company had used LIFO instead of FIFO to value its inventory.

A higher inventory turnover rate results in more effective cash flow management. Faster inventory…

The following financial information is taken from the annual report (amounts in millions) Year 2 Year 1 Net revenues Cost of goods sold Ending inventories $39,826 $35,209 16,277 14,963 3,126 2,621 Using the above data, calculate the company's inventory turnover, inventory-on-hand period, and gross profit percentage for Year 1 and Year 2. Round all answers to nearest one decimal place. Year 2 Year 1 Inventory turnover Inventory-on-hand period 63.9 Gross profit percentage 59.1 % 57.5 % Is the company's inventory management improving? Intel's inventory management effectiveness declined. + Intel uses FIFO to value its inventory. Would these ratios look better if the company used LIFO instead? Yes, Intel's inventory management would have looked somewhat better if the company had used LIFO instead of FIFO to value its inventory

The following financial information is taken from the annual report (amounts in millions) Year 2 Year 1 Net revenues Cost of goods sold Ending inventories $39,826 $35,209 16,277 14,963 3,126 2,621 Using the above data, calculate the company's inventory turnover, inventory-on-hand period, and gross profit percentage for Year 1 and Year 2. Round all answers to nearest one decimal place. Year 2 Year 1 Inventory turnover Inventory-on-hand period 63.9 Gross profit percentage 59.1 % 57.5 % Is the company's inventory management improving? Intel's inventory management effectiveness declined. + Intel uses FIFO to value its inventory. Would these ratios look better if the company used LIFO instead? Yes, Intel's inventory management would have looked somewhat better if the company had used LIFO instead of FIFO to value its inventory

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 58E: Analyzing Inventory The recent financial statements of McLelland Clothing Inc. include the following...

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