### Inventory Analysis and Financial Ratios**Deere & Company** is a global manufacturer and distributor of agricultural, construction, and forestry equipment. The company reports inventory and cost of goods sold using the LIFO method. Suppose it reported the following information in its 2022 annual report.#### Financial Information (in millions)| Category | 2022 | 2021 ||-------------------------|----------|----------|| Inventories | $2,397 | $3,042 || Current assets | $30,857 | - || Current liabilities | $12,753 | - || LIFO reserve | $1,367 | - || Cost of goods sold | $16,255 | - |---**Incorrect Answer Section****Inventory Turnover Calculation for 2022** *Round inventory turnover to 2 decimal places (e.g., 5.12).*- **Inventory turnover:** Input: 5.64 Status: **Incorrect****Days in Inventory Calculation for 2022** *Round days in inventory to 0 decimal places (e.g., 5).*- **Days in Inventory:** Input: 65 days Status: **Incorrect**---**Partially Correct Answer Section****Current Ratio Calculation for 2022** *Compute Deere's current ratio using the 2022 data as presented, and then again after adjusting for the LIFO reserve. Round answers to 2 decimal places (e.g., 5.12:1).*- **Based on data presented: Current ratio** - Input: 2.42:1 - Status: **Correct**- **After adjusting for LIFO reserve: Current ratio** - Input: 2.66:1 - Status: **Partially correct**---### Detailed Explanation:#### 1. Inventory TurnoverInventory Turnover measures how often a company's inventory is sold and replaced over a period. A higher ratio implies efficient inventory management by the company.#### 2. Days in InventoryDays in Inventory indicates the average number of days a company takes to sell its entire inventory during a particular period. It is calculated as:\[ \text{Days in Inventory} = \frac{365}{\text{Inventory Turnover}} \]#### 3. Current RatioThe

The question is based on the concept of accounting ratios.

Deere & Company is a global manufacturer and distributor of agricultural, construction, and forestry equipment. The company reports inventory and cost of goods sold using the LIFO method. Suppose it reported the following information in its 2022 annual report. (in millions) 2022 2021 Inventories $2.397 3,042 Current assets 30,857 Current liabilities 12.753 LIFO reserve 1.367 Cost of goods sold 16.255 X Your answer is incorrect

Deere & Company is a global manufacturer and distributor of agricultural, construction, and forestry equipment. The company reports inventory and cost of goods sold using the LIFO method. Suppose it reported the following information in its 2022 annual report. (in millions) 2022 2021 Inventories $2.397 3,042 Current assets 30,857 Current liabilities 12.753 LIFO reserve 1.367 Cost of goods sold 16.255 X Your answer is incorrect

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please do not give solution in image format thanku
Sheridan Combines, Inc. has $12000 of ending finished goods inventory as of December 31, 2022. If beginning finished goods inventory was $7000 and cost of goods sold was $42000, how much would Sheridan Combines, Inc. report for cost of goods manufactured? O $54000 O $7000 O $47000 O $37000 Save for Later Attempts: 0 of 1 used Submit Answer
Cullumber Hardware reported cost of goods sold as follows. Beginning inventory Cost of goods purchased Cost of goods available for sale Less: Ending inventory Cost of goods sold 2027 Cost of goods sold $ $30,000 175,000 205,000 35,000 $170,000 2026 2027 $ 20,000 150,000. 170,000 Cullumber made two errors: 1.2026 ending inventory was overstated by $3,100. 2.2027 ending inventory was understated by $6,100. Compute the correct cost of goods sold for each year. 30,000 $140,000 $ 2026
Crane Ltd. had the following items in inventory as at December 31, 2024: Item No. Quantity Unit Cost NRV དྷྭ སྒྲ སཱུ སྦ 340 $4.00 $4.30 370 3.00 2.90 380 8.00 9.00 400 7.00 6.80 Assume that Crane uses a perpetual inventory system. Fill in the table below for the lower of cost and net realizable value per unit, the inventory dollar amount at the lower of cost and net realizable value, and the dollar amount of the inventory at cost. ntity Unit Cost NRV Unit LC & NRV 340 $4.00 $4.30 S 370 3.00 2.90 Dollar LC & NRV 4.00 $ 2.90 1360 1073 380 8.00 9.00 8.00 3040 400 7.00 6.80 6.80 2720 Dollar Cost 1360 1110 3040 2800 $ 8193 $ 8310 Prepare any necessary adjusting entry at December 31, 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry) Account Titles Debit Credit
Solve incorrect answers
Use the following information to answer this question: Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Cash Accounts received Inventory Windswept, Incorporated 2021 Income Statement ($ in millions) Total Net fixed assets Total assets 2020 $ 270 1, 090 1, 760 $ 3, 120 3, 460 $ 6, 580 2021 $ 290 $ 9,950 7,900 365 990 1, 650 $ 1,685 98 Windswept, Incorporated 2020 and 2021 Balance Sheets ($ in millions) $ 1,587 333 $ 1,254 Accounts payable Long-term debt Common stock Retained earnings $ 2,930 4, 040 $ 6,970 Total liabilities & equity 2020 $ 1,540 1, 060 3, 340 640 $ 6, 580 2021 $ 1,812 1, 248 3, 020 890 $ 6,970 Windswept, Incorporated, has 540 million shares of stock outstanding. Its price-earnings ratio for 2021 is 15. What is the market price per share of stock?
Correct Option?
Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. (in millions) Beginning inventory Ending inventory Cost of goods sold Sales revenue (a) 2020 Inventory turnover $1,700 2,200 15,015 38,600 2021 $2,200 $2,500 2,500 2022 45,100 2020 17,860 17,595 2,600 Calculate the inventory turnover for 2020, 2021, and 2022. (Round inventory turnover to 1 decimal place, e.g. 5.1.) 45,000 times 2021 times 2022 times
Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows: Inventory, Per Unit By Product Category Quantity Cost Market Furniture: Chairs 40 $40 $ 46 Desks 20 88 73 Tables 60 99 107 Accessories: Rugs 30 75 63 Lamps…
I need help with question
A company has the following information in its records. Certain data have been intentionally omitted ($ in thousands). Required: Determine the missing numbers. Note: Enter all amounts as positive numbers. Enter your answers in thousands. Beginning inventory Cost of goods sold Ending inventory Cost of goods available for sale Purchases (gross) Purchase discounts Purchase returns Freight-in 2024 2025 2026 $ 225 EA $ 681 $ 639 $ 225 $ 195 EA EA 966 $ 854 $ 720 $ 675 $ SASA 36 $ 33 $ 42 48 $ 32 31 50 $ 34
This information is available for Kingbird, Inc. for 2017, 2018, and 2019. 2017 2018 2019 Beginning inventory $ 106,000 $ 318,500 $ 410,000 Ending inventory 318,500 410,000 470,000 Cost of goods sold 894,000 1,127,500 1,292,500 Net sales 1,206,500 1,608,500 1,907,500 (a1) (a2) Your answer is partially correct. Try again. Calculate days in inventory for Kingbird, Inc. for 2017, 2018, and 2019. (Round answers to 1 de 2017 2018 2019 Days in inventory 86.9 days 117.7 days 125.8 days