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 28, 2017 and January 30, 2016.

3.

To determine

Compute the amount of inventory that Company D have per store as of January 28, 2017 and January 30, 2016. 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 28, 2017.

5.

To determine

Compute the amount of Days-sales-in-inventory for the year ending January 28, 2017.

6.

To determine

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