Chapter 5, Problem 1CFSAP

1.

To determine

Describe how does the inventory of Company D is made up of, and also describe the inventory costing method that Company D uses.

2.

To determine

Compute the amount of inventory that has been invested on the balance sheet as of January 31, 2015 and February 1, 2014.

3.

To determine

Compute the amount of inventory that Company D have per store as of January 31, 2015 and February 1, 2014. Also describe whether the inventory per store is increasing or decreasing.

4.

To determine

Compute the amount of inventory turnover ratio for the year ending January 31, 2015.

5.

To determine

Compute the amount of Days-sales-in-inventory for the year ending January 31, 2015.

6.

To determine

Describe the performance of Company D on one’s point of view.