Problem 14.8 ( LO3 ) Comparing Bell and Gangway Financial information for Bell and Gangway (two computer manufacturers) follows:
| Bell | Gangway | |||
| (in millions) | Year Ended 12/31/2020 | Year Ended 12/31/2019 | Year Ended 12/31/2020 | Year Ended 12/31/2019 |
| Sales | $61,133 | $57,420 | $8,922 | $8,457 |
| Cost of sales | 49,462 | 47,904 | 7,316 | 6,951 |
| Gross margin | $ 11,671 | $ 9,516 | $1,606 | $1,506 |
| Inventory | $ 1,180 | $ 660 | $ 400 | $ 351 |
Required
1. Compare Bell and Gangway in terms of their percentage changes in sales and gross margin.
2. Compare Bell and Gangway in terms of their gross margin percentages.
3. Compare Bell and Gangway in terms of inventory turnover and days’ sales in inventory
4. In your opinion, which firm has had better financial performance? Support your answer using your calculations in parts a, b, and c.
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Please reference this chapter and problem in your textbook. Refer to problem instructions in the textbook. Please upload your completed assignment to this page by the due date.
