(MODIFIED) During 2020, Reliable Hardware Store had the following selected accountsand balances:Php 6,000,0004,100,000200,000Net SalesNet PurchasesBeginning InventoryThe physical count of inventory on hand at December 31, 2020 amounted to Php 240,000.Reliable had consistently followed its policy of having a 50% mark-up on cost.REQUIRED:A. Compute the inventory shrinkage.B. The owner of the business believes that the inventory shrinkage was due toshoplifting and intends to hire a security guard with a monthly salary of Php 10,000to once and for all stop this practice. Is this a wise decision? Explain. Is there analternative solution and when should this plan of action be adopted?

Inventory shrinkage refers to excess inventory that was recorded in the accounting records but is no…

Answered: MODIFIED) During 2020, Reliable Harde…

MODIFIED) During 2020, Reliable Harde nd balances: Net Sales Net Purchases Beginning Inventory he physical count of inventory on hand at eliable had consistently followed its polic

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

(MODIFIED) During 2020, Reliable Hardware Store had the following selected accounts
and balances:
Php 6,000,000
4,100,000
200,000
Net Sales
Net Purchases
Beginning Inventory
The physical count of inventory on hand at December 31, 2020 amounted to Php 240,000.
Reliable had consistently followed its policy of having a 50% mark-up on cost.
REQUIRED:
A. Compute the inventory shrinkage.
B. The owner of the business believes that the inventory shrinkage was due to
shoplifting and intends to hire a security guard with a monthly salary of Php 10,000
to once and for all stop this practice. Is this a wise decision? Explain. Is there an
alternative solution and when should this plan of action be adopted?

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Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. (c) (in millions) Beginning inventory Ending inventory Cost of goods sold Sales revenue (a) Inventory turnover ratio Your answer is correct. Inventory turnover ratio 2020 Days in inventory $116,000 317,500 895,000 1,120,000 1,595,500 1,195,000 eTextbook and Medial Calculate the inventory turnover for 2020, 2021, and 2022. (Round answers to 1 decimal places, e.g. 15.2.) Gross profit rate 2020 2021 2020 $317,500 2020 410,500 Calculate the inventory turnover for 2020, 2021, and 2022. (Round answers to 1 decimal places, e.g. 15.2.) 4.1 times 4.1 times 2020 2022 89 days $410,500 476,500 1,297,500 1,894,000 Calculate the days in inventory for 2020, 2021, and 2022. (Round answers to 1 decimal places, e.g. 15.2.) 2021 % 2021 3.1 times. 2021 3.1 Calculate the gross profit rate for 2020, 2021, and 2022. (Round answers to 1 decimal places, e.g. 15.2 %) 2021 times 117 days 2022 2022 2022 2022 125 2.9 2.9 times times…
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Manji
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Subject: accounting
None
I computed 72,540 but is checked wrong why?