The disclosure note below is from the 2020 10-K report of Casey's General Stores, Inc., anoperator of convenience stores ($ thousands).InventoriesInventories, which consist of merchandise and fuel, are stated at the lower of cost or market. Forfuel, cost is determined through the use of the first-in, first-out (FIFO) method. For merchandiseinventories, cost is determined through the use of the last-in, first-out (LIFO) method. The excess ofreplacement cost over the stated LIFO value was $87,546 and $80,814 at April 30, 2020 and 2019,respectively. There were no material LIFO liquidations during the period presented. Below is asummary of the inventory values at April 30, 2020 and 2019.Years Ended April 30,20202019$33,695$83,204Merchandise202,312 189,836Total Inventory $236,007 $273,040($ thousands)FuelIn 2020, Casey's General Stores reported sales revenue of $9,175.3 million and cost of goods sold of$7,030.6 million.a. Calculate the amount of inventories purchased by Casey's General Stores in 2020. Roundintermediate calculations and answers to one decimal place.$ 6,993.6million.b. What amount of gross profit would Casey's General Stores have reported if the FIFO method hadbeen used to value all inventories in 2020. Round intermediate calculations and answer to onedecimal place.$ 2,144.7x millionc. Calculate the gross profit margin (GPM) as reported and assuming that the FIFO method hadbeen used to value all inventories. Round answers to two decimal places (i.e., 0.15785 = 15.79%)As reported 0X %Under FIFO 0X %

Gross profit is the difference between the net sales and cost of goods sold. Net sales is derived by…

The disclosure note below is from the 2020 10-K report of Casey's General Stores, Inc., an operator of convenience stores ($ thousands). Inventories Inventories, which consist of merchandise and fuel, are stated at the lower of cost or market. For fuel, cost is determined through the use of the first-in, first-out (FIFO) method. For merchandise inventories, cost is determined through the use of the last-in, first-out (LIFO) method. The excess of replacement cost over the stated LIFO value was $87,546 and $80,814 at April 30, 2020 and 2019, respectively. There were no material LIFO liquidations during the period presented. Below is a summary of the inventory values at April 30, 2020 and 2019.

The disclosure note below is from the 2020 10-K report of Casey's General Stores, Inc., an operator of convenience stores ($ thousands). Inventories Inventories, which consist of merchandise and fuel, are stated at the lower of cost or market. For fuel, cost is determined through the use of the first-in, first-out (FIFO) method. For merchandise inventories, cost is determined through the use of the last-in, first-out (LIFO) method. The excess of replacement cost over the stated LIFO value was $87,546 and $80,814 at April 30, 2020 and 2019, respectively. There were no material LIFO liquidations during the period presented. Below is a summary of the inventory values at April 30, 2020 and 2019.

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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