$ millionsNet salesCost of salesAppleCurrentYear$ 265,595$ 163,756($ millions)Net salesCost of salesGross marginGross margin ratioPrior Year$ 229,234$ 141,048Required 1 Required 2 Required 3 Required 4Required1. Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies.2. Which company earns more in gross margin for each dollar of net sales for the current year?3-a. Does the company's current-year gross margin underperform or outperform the 35% industry average in the case of Apple?3-b. Does the company's current-year gross margin underperform or outperform the 35% industry average in the case of Google?4-a. Is the change in the company's current-year gross margin favorable or unfavorable for Apple?4-b. Is the change in the company's current-year gross margin favorable or unfavorable for Google?Current Year265,595163,756Complete this question by entering your answers in the tabs below.%Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies.Note: Enter your dollar answers in millions. Round your percentage answers to 1 decimal place.AppleGoogleCurrentYear$ 136,819$ 59,549Prior Year229,234141,048Prior Year$ 110,855$ 45,583%Current Year$ 136,81959,549Google%Prior Year$110,85545,583%

$ millions Net sales Cost of sales. Apple Current Year $ 265,595 $ 163,756 Prior Year $ 229,234 $ 141,048 Google Current Year $ 136,819 $ 59,549 Prior Year $ 110,855 $ 45,583 Required 1. Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies. 2. Which company earns more in gross margin for each dollar of net sales for the current year? 3-a. Does the company's current-year gross margin underperform or outperform the 35% industry average in the case of Apple? 3-b. Does the company's current-year gross margin underperform or outperform the 35% industry average in the case of Google?

$ millions Net sales Cost of sales. Apple Current Year $ 265,595 $ 163,756 Prior Year $ 229,234 $ 141,048 Google Current Year $ 136,819 $ 59,549 Prior Year $ 110,855 $ 45,583 Required 1. Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies. 2. Which company earns more in gross margin for each dollar of net sales for the current year? 3-a. Does the company's current-year gross margin underperform or outperform the 35% industry average in the case of Apple? 3-b. Does the company's current-year gross margin underperform or outperform the 35% industry average in the case of Google?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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