Discussion Post: Computers Have Become A Staple In Life

Discussion Postcomputers Have Become A Staple In the Lives Of Most Pe

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 2 of the following websites and make a selection: HP, Acer, Apple. 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 measure how effectively a business is using its assets to generate sales is the ratio of net sales to assets. The calculation explanation for this financial ratio is found on page 275 of the textbook. Use the following links to find the financial information needed to calculate the net sales to assets measures 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.
  • HP reports annual data
  • ACER group.com/public/Investor_Relations/index.htm
  • Apple

Paper For Above instruction

In the contemporary marketplace, consumer electronics such as laptops have become essential tools for personal and professional life. Choosing the right laptop involves evaluating several factors, including price, warranty, delivery, and financing options. This analysis compares selections from two leading manufacturers—Apple and Acer—considering these critical aspects and the financial efficiency of each company based on net sales to assets ratios.

Comparison of Apple and Acer Laptops

Apple's laptops, primarily the MacBook series, are renowned for their sleek design, robust build quality, and seamless integration with other Apple products. The prices vary across models, with high-end MacBook Pros typically priced between $1,299 and $2,399, depending on specifications (Apple, 2024). The warranty service includes a one-year limited warranty with optional AppleCare+ plans, which extend coverage and technical support. Apple offers free delivery and installation of software updates. Recycling initiatives, such as the Apple Trade-In program, allow customers to exchange old devices for credit or recycling options (Apple, 2024). Financing options are available through the Apple Card or partner financing services, often offering zero-interest plans for qualified buyers.

Acer’s laptops are generally more budget-friendly, with models ranging from about $300 for entry-level devices to approximately $1,000 for higher-performance models suitable for work or study (Acer, 2024). Acer provides free shipping on most models for online orders and offers various discounts and coupons, especially during promotional seasons. Warranties typically include a one-year standard warranty, with optional extended warranties at an additional cost. Acer also participates in recycling programs and suggests environmentally responsible disposal of old components (Acer, 2024). Financing options are available via third-party providers, often with flexible installment plans.

Factors Impacting Gross Profit in Merchandise Companies

Gross profit fundamentally depends on revenue generation and cost control. Factors influencing gross profit include product pricing strategies, manufacturing or procurement costs, sales volume, and operational efficiencies. Price setting directly impacts revenue; higher prices may increase gross profit margins but could reduce sales volume. The cost of goods sold (COGS), including raw materials, labor, and overhead costs, significantly influences gross profit—lower COGS boosts profitability. Additionally, discounts, coupons, and promotional campaigns can affect gross profit margins by reducing per-unit revenue but potentially increasing total sales volume (Horngren et al., 2018).

Financial Ratio Analysis: Net Sales to Assets

The net sales to assets ratio measures how effectively a company uses its assets to generate sales. It is calculated by dividing net sales by average total assets. This ratio indicates operational efficiency; higher ratios reflect better asset utilization (Higgins, 2012). To determine which company performs better in this regard, we examine the most recent annual reports for Apple and Acer. According to Apple’s 2023 financial statements, net sales were approximately $394 billion, with total assets of about $346 billion, resulting in a ratio of approximately 1.14 (Apple, 2023). For Acer, the 2023 annual report indicates net sales of around $8 billion and total assets of roughly $5 billion, providing a ratio of 1.6, which suggests more effective asset utilization relative to revenue (Acer, 2023).

Analysis and Conclusion

Based on these calculations, Acer exhibits a higher net sales to assets ratio compared to Apple. This difference can be attributed to Acer’s focus on cost-effective manufacturing and a higher proportion of revenue derived from its core product lineup—budget laptops and gaming devices—allowing it to convert assets into sales more efficiently. Apple, while holding a higher overall revenue, invests heavily in research and development, branding, and premium product features, which can inflate asset values without proportionate increases in sales efficiency. Therefore, Acer’s superior ratio indicates a more aggressive utilization of its assets to generate sales, which might be advantageous in markets prioritizing cost efficiency.

References

  • Apple Inc. (2024). Annual Report 2023. Retrieved from https://www.apple.com/investor/annual-report2023
  • Acer Inc. (2024). Annual Report 2023. Retrieved from https://www.acer.com/investor-relations/annual-reports
  • Horngren, C. T., Sundem, G. L., Stratton, W. O., Burgstahler, D., & Schatzberg, J. (2018). Introduction to Management Accounting. Pearson.
  • Higgins, R. C. (2012). Analysis for Financial Management. McGraw-Hill Education.
  • Investopedia. (2023). Net Sales to Assets Ratio. Retrieved from https://www.investopedia.com/terms/n/netsalestoassets.asp
  • Statista. (2023). Laptop Market Revenue and Price Trends. Retrieved from https://www.statista.com
  • Forbes. (2024). Top Tech Companies and Financial Performance. Retrieved from https://www.forbes.com
  • Bloomberg. (2023). Corporate Financial Data. Retrieved from https://www.bloomberg.com
  • Reuters. (2024). Market Analysis of Technology Companies. Retrieved from https://www.reuters.com
  • Business Insider. (2023). Consumer Electronics Trends. Retrieved from https://www.businessinsider.com

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