Business application- Both oracle Corporation and Cisco systems are in the computer industry. The data that follows (in millions) are from the end of their fiscal years 2011.17
| |
Oracle |
Cisco |
|
Accounts payable
|
$ 701
|
$ 876
|
|
Cost of goods sold
|
8,398
|
16,682
|
|
Increase (decrease) in inventory
|
(28)
|
(147)
|
Compare the payables turnover and days' payable for both companies. How are cash flows affected by days' payable? How do Oracle's and Cisco Systems' ratios compare with the computer industry ratios shown in the chapter? (Use year-end amounts for ratios and round to one decimal place.)
Text book: Principles of Accounting By Belverd Needles, Marian Powers, Susan Crosson.