Federal Way, Incorporated, is a major department store chain. The dominant portion of the company's business consists of providingmerchandise and services to consumers through department stores and online. In a prior annual report, Federal Way reported cost ofgoods sold of $11,577 million, ending inventory for the current year of $3,262 million, and ending inventory for the previous year of$3,636 million.Required:Develop a reasonable estimate of the merchandise purchases for the year.Note: Enter your answers in millions.Purchasesmillionmillionmillionmillion

To estimate the merchandise purchases for the year, we can use the following formula: Beginning…

Answered: Federal Way, Incorporated, is a major…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 3MAD: The general merchandise retail industry has a number of segments represented by the following...

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Federal Way, Incorporated, is a major department store chain. The dominant portion of the company's business consists of providing merchandise and services to consumers through department stores and online. In a prior annual report, Federal Way reported cost of goods sold of $11,572 million, ending inventory for the current year of $3,260 million, and ending inventory for the previous year of $3,638 million. Required: Develop a reasonable estimate of the merchandise purchases for the year. Note: Enter your answers in millions. Purchases million million million million
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Dillard’s, Inc. , operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2013 third-quarter report, the company reported Cost of Goods Sold of $1.0 billion,ending inventory for the third quarter of $1.8 billion, and ending inventory for the previous quarterof $1.5 billion. Determine the amount of merchandise purchases for the third quarter.
Collins corporation, operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2019 second-quarter report, the company reported Cost of Goods Sold of $7,900 million, ending inventory for the second quarter of $9,100 million, and ending inventory for the previous quarter of $9,100 million. Determine the amount of merchandise purchases for the second quarter. (Enter your answer in millions.) Merchandise Purchases million
Sellall Department Stores reported the following amounts as of its December 31 year- end: Administrative Expenses, $1,800; Cost of Goods Sold, $19,440; Income Tax Expense, $2,790; Interest Expense, $1,400; Interest Revenue, $160; General Expenses, $2,000; Net Sales, $32,580; and Delivery (freight-out) Expense, $240. Prepare a multistep income statement for distribution to external financial statement users. SELLALL DEPARTMENT STORES Income Statement
Sellall Department Stores reported the following amounts as of its December 31 year-end: Administrative Expenses, $1,800; Cost of Goods Sold, $19,440; Income Tax Expense, $2,790; Interest Expense, $1,400; Interest Revenue, $160; General Expenses, $2,000; Net Sales, $32,580; and Delivery (freight-out) Expense, $240.Prepare a multistep income statement for distribution to external financial statement users.
1. Consider the following data determined from the financial statements of a major retailer: Inventory turnover = 75 days Days' sales outstanding = 30 Days' purchases outstanding = 50 Which of the following statements is correct? A.All of these statements are correct. B.On average, the company pays its suppliers 55 days before it collects cash from its customers. C.On average, the company sells the inventory 45 days before it collects cash from its customers. D.On average, the company collects cash from its customers 20 days before it pays its suppliers. E.On average, the company purchases its inventory 25 days before it sells it. 2. Which of the following would explain why Payments to suppliers and employees for the period is greater than Total operating expenses for the period? A.Significant impairments of non-current assets during the period. B.Significant levels of prepaid expenses at the end of the period. C.Significant levels of trade payables at the end of the period.…
Harvest, Inc., a retail company, reported inventories of $1,020,240 at the beginning of the year, and $1,050,480 at the end of the year. The annual income statement reported cost of goods sold of $8,760,240. a. Compute the amount of inventory purchased during the year. $ a. Prepare journal entries to record (1) inventory purchases and (2) cost of goods sold. Assume all purchases were made on account. Ref. (1) (2) Account To record purchases. To record cost of goods sold. Debit Credit
PC Mall, Inc., is a direct marketer of computer hardware, software, peripherals, and electronics.In a recent annual report, the company reported that its revenue is “recognized upon receipt of theproduct by the customer.”Required:1. Indicate whether PC Mall’s sales terms are FOB shipping point or FOB destination.2. Assume PC Mall sold inventory on account to eCOST.com on December 28 that was to bedelivered January 3. The inventory cost PC Mall $25,000 and the selling price was $30,000.What amounts, if any, related to this transaction would be reported on PC Mall’s balance sheetand income statement in December? In January?3. Assume PC Mall purchased electronics on December 29 that were shipped that day andreceived on January 2. For these goods to be included in PC Mall’s inventory on December 31,would the terms have been FOB destination or FOB shipping point?
Inigo Stores operates general merchandise stores that feature quality merchandise at low prices to meet the needs of middle-, low-, and fixed-income families in southern, eastern, and midwestern states. For the year ended February 1, 2019, the company reported average inventory of $2,478 (in millions) and an inventory turnover of 4.92. Average total fixed assets were $2,077 (million) and the fixed asset turnover ratio was 8.44. 1. Calculate Inigo Stores’s net sales and cost of goods sold. 2. Compute the gross profit percentage. 3. Is this an improvement from the gross profit percentage of 31.0 percent earned during the previous year?
LaRoe Lawns’ inventory increased during the year by $5.9 million. Its accounts payable increased by $4.8 million during the same period.Required: What is the amount of cash LaRoe paid to suppliers of merchandise during the reporting period if its cost of goods sold was $56 million? Prepare a summary entry that represents the net effect of merchandise purchases during the reporting period. Record the net effect of merchandise purchases.
A concrete corporation had cost of goods sold of $1,550,000 for the third quarter. The beginning inventory at cost was $155,000, and the ending inventory at cost amounted to $180,900. The inventory turnover rate published as the industry standard for a business of this size is 9.5 times. Round inventories to the nearest cent and inventory turnovers to the nearest tenth. (a) Calculate the average inventory (in $) and actual inventory turnover rate for the company. average inventory $ inventory turnover times (b) If the turnover rate is less than 9.5 times, calculate the target average inventory (in $) needed to theoretically come up to industry standards. If the turnover rate is greater than 9.5 times, enter "above".

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