**Exercise:****EXERCISE 8****Relationships Within Periodic Inventory Systems**This exercise assesses the relationships between the information recorded in periodic inventory systems and net income. The net income of the Poshak Super Jackets, Inc., and Slappy, Inc., should then be indicated by placing brackets around loss amounts. At the left, the first-listed company is Poshak Super Jackets, Inc.| | Poshak Super Jackets, Inc. | Slappy, Inc. ||------------------------|----------------------------|--------------|| Net Sales | a. $480,000 | c. $130,000 || | b. $340,000 | d. $200,000 || | c. $200,000 | e. $270,000 || Cost of Goods Sold | 180,000 | 70,000 || Net Income (Loss) | ? | ? || Gross Profit | 300,000 | ? || Expenses | 250,000 | ? |Year after year, average gross profit rates in the industry have increased to 42.5 percent and expenses have stabilized at 33 percent of sales for companies using periodic inventory systems. **Instructions:**1. Compute the missing amounts for Poshak Super Jackets, Inc., and Slappy, Inc.2. Discuss inventory system implications.---**Explanation of Table:**The table compares financial metrics for two companies: Poshak Super Jackets, Inc. and Slappy, Inc. The key figures include net sales, cost of goods sold, net income (loss), gross profit, and expenses. Missing values need to be calculated based on given information and typical industry metrics.

Sale means the amount of revenue earned by selling goods and the cost of goods sold means the cost…

This exercise stresses the relationships between the information recorded in a periodic inventory system and the basic elements of an income statement. Each of the five lines represents a separate set of information. You are to fill in the missing amounts. A net loss in the right-hand column is to be indicated by placing brackets around the amount, for example as in line e <15,000>. Net Sales a. 240,000 b. 480,000 c. 630,000 d. 810,000 e. ? Beginning Net Pur- Inventory chases 76,000 104,000 ztw Soa 72,000 272,000 1000 207,000 ? 450,000 ? ? 156,000 Ho Ending Inventory 35,200 Foreni ? Cost of Goods Sold Gross Profit 95,200 ? onlow hundvis ? ONCE A 264,000 441,000 189,000 Expenses 72,000 10? 148,500 234,000 270,000 ? 166,500 135,000 153,000 396,000 135,000 Net Income or (Loss) 23X 20,000 ? <15,000> market chains-Publix Super Markets, Inc., and Safeway, Inc.- Each uses a sophisticated

This exercise stresses the relationships between the information recorded in a periodic inventory system and the basic elements of an income statement. Each of the five lines represents a separate set of information. You are to fill in the missing amounts. A net loss in the right-hand column is to be indicated by placing brackets around the amount, for example as in line e <15,000>. Net Sales a. 240,000 b. 480,000 c. 630,000 d. 810,000 e. ? Beginning Net Pur- Inventory chases 76,000 104,000 ztw Soa 72,000 272,000 1000 207,000 ? 450,000 ? ? 156,000 Ho Ending Inventory 35,200 Foreni ? Cost of Goods Sold Gross Profit 95,200 ? onlow hundvis ? ONCE A 264,000 441,000 189,000 Expenses 72,000 10? 148,500 234,000 270,000 ? 166,500 135,000 153,000 396,000 135,000 Net Income or (Loss) 23X 20,000 ? <15,000> market chains-Publix Super Markets, Inc., and Safeway, Inc.- Each uses a sophisticated

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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inventory as your base numper and adjust the couss amount to the required amount to make the Total Goods Available for Sale to the total of the Value of the ending inventory and the COGS total. Negative value should be indicated with minus sign. Round your intermediate and final answers to 2 decimal places.) \table[[Date,, \table [[Purchases/Transportation - In /], [(PurchaseReturns/Discounts)]], \table [[Cost of Goods Sold/(Returns to], [Inventory)]], Balance in Inventory], [Units, Cost/Unit, Total $, Units, Cost/Unit, Total $, Units, \table[[Avg], [ Cost/Unit]], Total $], [Mar., Brought Forward,,r, 61, $, 93.00, $, 5, 673.00 Telamark Company uses the moving weighted average method for inventory costing. Required: The following incomplete inventory sheet regarding Product W506 is available for the month of March 2023. Complete the inventory sheet. (Use the value of the ending inventory as your base number and adjust the COGS $ amount to the required amount to make the Total Goods…
Accountants at UltraTech obtain their values for inventory and total assets, calculate the balance sheet percentage by dividing inventory by total assets for each year and summarize the observations for the relative size of inventory to total assets for each year and percentage change from year-to-year. This would allow them to effectively assess: a. Inventory control compared to competitorsb. If there is an effective return on assetsc. If inventory is being properly managedd. How they are managing liabilities
1. At the end of a period, the inventory account is _______. 2. Gross sales less sales discounts and sales returns and allowances equals____. 3. When an unearned, The revenue will go____. 4. Sales returns and allowances are used in calculating _______. 5. Ending inventory represents goods not yet ________. 6. Inventory is increased by a _______.
The following income statement items are given in mixed order and with certain information missing. Gross sales Selling Expenses Cost of Goods Sold ? ? Net Sales Sales Returns & Allowances Net Income ? ? $750 400 Interest expense Gross Margin Income from Operations General & Administrative Expenses 250 1.800 200 240 Required: By calculating the missing information, prepare the Multi-step Income Statement in proper format
d The records of Cordova Corp. showed the following transactions, in the order given, relating to the major inventory item: Required: Complete the following schedule for each independent assumption. (Round unit costs to the nearest cent.) a. 1. Inventory 2. Purchase 3. Sale (at $15.20) 4. Purchase 5. Sale (at $15.20) 6. Purchase 7. Sale (at $18.20) 8. Purchase Independent Assumptions FIFO Weighted average, periodic inventory system Moving average, perpetual inventory system b. Unit Units Cost 5,600 $7.00 11,200 7.30 7,900 10,200 7.60 16,800 18,800 7.76 16,800 11,200 7.90 C. $ Ending Inventory 121,848 121,675 X 121,676 Units and Amounts Cost of Goods Sold $ 311,000 311,064 311,328 $ Gross Margin 370,200 370,136 X 369,872
James's Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2025, James adopted dollar-value LIFO and decided to use a single inventory pool. The company's January 1 inventory consists of: Category Portable Midsize Flat-screen Category Portable Midsize Quantity Cost per Unit $100 Flat-screen 3,000 4,000 1,500 8,500 Quantity Purchased 7,500 During 2025, the company had the following purchases and sales. 10,000 5,000 250 22,500 400 Cost per Unit $110 300 Total Cost 500 $300,000 1,000,000 600,000 $1,900,000 Quantity Sold 7,000 12,000 3,000 22,000 Selling Price per Unit $150 400 600
Please help me evaluate these financial ratios to identify any trends or issues and potential reasons for them. Could Covid have played a role? Please help me interpret the ratios in Group B from managements perspective from period 12/31/19 & 6/30/20
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The following information is taken from a company’s records. Costper Unit Market valueper Unit Inventory Item 1 (10 units) $39 $38 Inventory Item 2 (22 units) 19 19 Inventory Item 3 (12 units) 9 11 Applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory? $fill in the blank 1
Glasgow Corporation has the following inventory transactions during the year. Unit Number of Units 53 133 Cost $ 45 47 Total Cost $ 2,385 6,251 10,150 5,763 Date Transaction Jan. 1 Beginning inventory Purchase Purchase Purchase Apr. 7 Jul.16 203 50 Oct. 6 113 51 502 $24,549 For the entire year, the company sells 433 units of inventory for $63 each.
10. Choose the options to correctly complete the following statement. Some balance sheet and income statement accounts that vary directly with sales include: 1. Cost of goods sold II. Depreciation III. Accounts payable IV. Accounts receivable O I, II, III only O I, II, IV only O I, III, IV only O I, II, III, and IV
The following table shows some selected financial information of ABC Company. Gross sales.... OMR 97000, Sales returns and discounts.... OMR 7000. Opening Inventory....OMR 4000 Total Purchases.... OMR 56000 Purchase returns... OMR 4000 Closing Inventory... OMR 8000 According to the given information, which of the following shows the correct Inventory Turnover Ratio? Select one: O a. 5 b. 8 O C. 7 d. 6