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

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

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.
Years Ended April 30,
2020
2019
$33,695
$83,204
Merchandise
202,312 189,836
Total Inventory $236,007 $273,040
($ thousands)
Fuel
In 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. Round
intermediate calculations and answers to one decimal place.
$ 6,993.6
million.
b. What amount of gross profit would Casey's General Stores have reported if the FIFO method had
been used to value all inventories in 2020. Round intermediate calculations and answer to one
decimal place.
$ 2,144.7
x million
c. Calculate the gross profit margin (GPM) as reported and assuming that the FIFO method had
been used to value all inventories. Round answers to two decimal places (i.e., 0.15785 = 15.79%)
As reported 0
X %
Under FIFO 0
X %

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