Unit 8 Discusssion AC114 Accounting for Merchandising Business

Accounting for Merchandising Businesses

Computers have become a staple in the lives of most people. There are many companies that provide computers on the market. Assume that you are planning to purchase a new laptop for your classes, work and home use. Please go to the websites of two major United States computer manufacturers such as Hewlett Packard®, Acer®, Apple®, etc. and make a selection.

Once you have made your selection, please complete the following items and questions:

  • Compare the following items for your selections:
    • Price
    • Delivery Charges
    • Financing Options
    • Discounts
    • Coupons
    • Warranties
    • Installation Offered
    • Recycling of Old Components Offered
  • What are some factors that can impact the gross profit of a merchandise company?
  • One item that can help investors understand the relationship between net sales and net profits is the gross profit rate. The calculation explanation for this financial ratio is found on page 5-18 of the textbook. Find the financial information needed to calculate the gross profit rate for your two selected companies.
    • Which company has the better ratio?
    • Why do you think this is the case?

Please use the most recent annual report available. Also, make sure to use the same year’s annual report for your companies.

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