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Business Accounting Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac

1. Introduction: Inventories is a current assets by which an organization runs its business operations. It is the cost of product to be sold. For retailer, the inventory is readily available for sale. For manufacturer, the inventory is classified into 3 parts- raw materials, work in progress, and finished product. To Determine: Amount of inventories A reported as current assets on (a) on September 24, 2016 (b) on September 24,2015. On September 24, 2016: $2,132 million On September 24, 2015:$2,349 million As per the financial statement of A Inc. for year ended September 2016, the following figures have been reported: Particulars September 24, 2016 (Amount in USD, in millions) September 24, 2015 (Amount in USD, in millions) Inventories $2,132 2,349 Inventory is a current asset so it has been reported on the consolidated balance sheet of A Company in the appendix. 2. Introduction: Inventories is a current assets by which an organization runs its business operations. It is the cost of product to be sold. For retailer, the inventory is readily available for sale. For manufacturer, the inventory is classified into 3 parts- raw materials, work in progress, and finished product. To Determine: The percent of inventories make up of total assets (a) on September 24, 2016 (b) on September 24, 2015. On September 24, 2016: 0.66% On September 24, 2015: 0.81% The below table calculates the percentage of inventory over total assets: Inventory over total assets formula = I n v e n t o r y T o t a l A s s e t s X 100 Particulars September 24, 2016 (Amount in USD, in millions) September 24, 2015 (Amount in USD, in millions) Inventories (A) $2,132 2,349 Total Assets (B) $321,686 $290,345 Percentage of Inventory over total assets [(A)/(B)] 0.66% 0.81% 3. Introduction: Inventories is a current assets by which an organization runs its business operations. It is the cost of product to be sold. For retailer, the inventory is readily available for sale. For manufacturer, the inventory is classified into 3 parts- raw materials, work in progress, and finished product. To Determine: Does A prefer to inventory to be a lower or higher percentage of total assets. A maintains a lower inventory over total assets. Inventory over total assets formula = I n v e n t o r y T o t a l A s s e t s X 100 Particulars September 24, 2016 (Amount in USD, in millions) September 24, 2015 (Amount in USD, in millions) Inventories (A) $2,132 2,349 Total Assets (B) $321,686 $290,345 Percentage of Inventory over total assets [(A)/(B)] 0.66% 0.81% From the above table, it is cleared that A maintains a lower percentage of inventory over total assets. It means the inventories of A are sold quickly and are converted into cash or accounts receivable . 4. Introduction: Inventory turnover is the method to calculate how fast the inventory does turns into sales. Days’ sales in inventory is the method to calculate the number of days by the inventory for getting sold. To Compute: (a) inventory turnover and (b) days’ sales in inventory as of September 24, 2016. Inventory Turnover: 58.64. Days’ sales in inventory: 6.22 days. The below table calculates the inventory turnover and days’ sales in inventory: Particulars September 24, 2016 (Amount in USD, in millions) Average Inventory O p e n i n g I n v e n t o r + C l o sin g I n v e n t o r y 2 $ 2 , 132 + $ 2 , 349 2 $2240.5 Cost of sales (as per income statement) $131,376 (a) Inventory turnover Cos t o f s a l e s A v e r a g e I n v e n t o r y $ 131 , 376 $ 2240.50 (a) Inventory turnover 58.64 (b) Days’ sales in inventory A v e r a g e I n v e n t o r y Cos t o f S a l e s X 365 $ 2240.50 $ 131 , 376 X 365 (b) Days’ sales in inventory 6.22 days

1. Introduction: Inventories is a current assets by which an organization runs its business operations. It is the cost of product to be sold. For retailer, the inventory is readily available for sale. For manufacturer, the inventory is classified into 3 parts- raw materials, work in progress, and finished product. To Determine: Amount of inventories A reported as current assets on (a) on September 24, 2016 (b) on September 24,2015. On September 24, 2016: $2,132 million On September 24, 2015:$2,349 million As per the financial statement of A Inc. for year ended September 2016, the following figures have been reported: Particulars September 24, 2016 (Amount in USD, in millions) September 24, 2015 (Amount in USD, in millions) Inventories $2,132 2,349 Inventory is a current asset so it has been reported on the consolidated balance sheet of A Company in the appendix. 2. Introduction: Inventories is a current assets by which an organization runs its business operations. It is the cost of product to be sold. For retailer, the inventory is readily available for sale. For manufacturer, the inventory is classified into 3 parts- raw materials, work in progress, and finished product. To Determine: The percent of inventories make up of total assets (a) on September 24, 2016 (b) on September 24, 2015. On September 24, 2016: 0.66% On September 24, 2015: 0.81% The below table calculates the percentage of inventory over total assets: Inventory over total assets formula = I n v e n t o r y T o t a l A s s e t s X 100 Particulars September 24, 2016 (Amount in USD, in millions) September 24, 2015 (Amount in USD, in millions) Inventories (A) $2,132 2,349 Total Assets (B) $321,686 $290,345 Percentage of Inventory over total assets [(A)/(B)] 0.66% 0.81% 3. Introduction: Inventories is a current assets by which an organization runs its business operations. It is the cost of product to be sold. For retailer, the inventory is readily available for sale. For manufacturer, the inventory is classified into 3 parts- raw materials, work in progress, and finished product. To Determine: Does A prefer to inventory to be a lower or higher percentage of total assets. A maintains a lower inventory over total assets. Inventory over total assets formula = I n v e n t o r y T o t a l A s s e t s X 100 Particulars September 24, 2016 (Amount in USD, in millions) September 24, 2015 (Amount in USD, in millions) Inventories (A) $2,132 2,349 Total Assets (B) $321,686 $290,345 Percentage of Inventory over total assets [(A)/(B)] 0.66% 0.81% From the above table, it is cleared that A maintains a lower percentage of inventory over total assets. It means the inventories of A are sold quickly and are converted into cash or accounts receivable . 4. Introduction: Inventory turnover is the method to calculate how fast the inventory does turns into sales. Days’ sales in inventory is the method to calculate the number of days by the inventory for getting sold. To Compute: (a) inventory turnover and (b) days’ sales in inventory as of September 24, 2016. Inventory Turnover: 58.64. Days’ sales in inventory: 6.22 days. The below table calculates the inventory turnover and days’ sales in inventory: Particulars September 24, 2016 (Amount in USD, in millions) Average Inventory O p e n i n g I n v e n t o r + C l o sin g I n v e n t o r y 2 $ 2 , 132 + $ 2 , 349 2 $2240.5 Cost of sales (as per income statement) $131,376 (a) Inventory turnover Cos t o f s a l e s A v e r a g e I n v e n t o r y $ 131 , 376 $ 2240.50 (a) Inventory turnover 58.64 (b) Days’ sales in inventory A v e r a g e I n v e n t o r y Cos t o f S a l e s X 365 $ 2240.50 $ 131 , 376 X 365 (b) Days’ sales in inventory 6.22 days

Solution Summary: The author explains that inventories are current assets by which an organization runs its business operations.

Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac

Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac

9th Edition

ISBN: 9781260260779

Author: Wild

Publisher: MCG

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Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac

Ch. 5 - Describe how costs flow from inventory to cost of...Ch. 5 - Prob. 2DQ Ch. 5 - Prob. 3DQ Ch. 5 - If inventory errors are said to correct...Ch. 5 - Prob. 5DQ Ch. 5 - Prob. 6DQ Ch. 5 - Prob. 7DQ Ch. 5 - When preparing interim financial statements, what...Ch. 5 - Prob. 9DQ Ch. 5 - Prob. 10DQ

Ch. 5 - Prob. 11DQ Ch. 5 - Refer to Samsung’s financial statements in...Ch. 5 - Prob. 1QS Ch. 5 - Prob. 2QS Ch. 5 - Prob. 3QS Ch. 5 - Prob. 4QS Ch. 5 - Prob. 6QS Ch. 5 - Prob. 7QS Ch. 5 - Prob. 8QS Ch. 5 - Prob. 9QS Ch. 5 - Prob. 10QS Ch. 5 - Prob. 11QS Ch. 5 - Refer to the information in QS 5-10 and assume the...Ch. 5 - Prob. 13QS Ch. 5 - Prob. 14QS Ch. 5 - Prob. 15QS Ch. 5 - Prob. 16QS Ch. 5 - Prob. 17QS Ch. 5 - Identify the inventory costing method best...Ch. 5 - Prob. 19QS Ch. 5 - In taking a physical inventory at the end of the...Ch. 5 - Prob. 21QS Ch. 5 - Confucious Bookstore’s inventory is destroyed by a...Ch. 5 - Answer each of the following questions related to...Ch. 5 - Prob. 24QS Ch. 5 - Prob. 1E Ch. 5 - Prob. 2E Ch. 5 - Laker Company reported following January purchases...Ch. 5 - Prob. 7E Ch. 5 - Prob. 8E Ch. 5 - Prob. 9E Ch. 5 - Prob. 10E Ch. 5 - Prob. 11E Ch. 5 - Prob. 12E Ch. 5 - Prob. 13E Ch. 5 - Prob. 14E Ch. 5 - Prob. 15E Ch. 5 - Prob. 16E Ch. 5 - Prob. 17E Ch. 5 - Tree seedlins has the following current-year...Ch. 5 - Prob. 1PSA Ch. 5 - Prob. 2PSA Ch. 5 - Prob. 3PSA Ch. 5 - Prob. 5PSA Ch. 5 - Prob. 6PSA Ch. 5 - Prob. 7PSA Ch. 5 - QP Corp. sold 4,000 units of its product at $50...Ch. 5 - Prob. 9PSA Ch. 5 - Prob. 10PSA Ch. 5 - Prob. 1PSB Ch. 5 - Prob. 2PSB Ch. 5 - Prob. 3PSB Ch. 5 - Prob. 4PSB Ch. 5 - Prob. 5PSB Ch. 5 - Hallam Company’s financial statements show the...Ch. 5 - Prob. 7PSB Ch. 5 - Shepard Company sold 4,000 units of its product at...Ch. 5 - Prob. 9PSB Ch. 5 - Prob. 10PSB Ch. 5 - Santana Rey of Business solutions is evaluating...Ch. 5 - Prob. 5.2SP Ch. 5 - Prob. 1FSA Ch. 5 - Prob. 2FSA Ch. 5 - Prob. 3FSA Ch. 5 - Golf Challenge Corp. is a retail sports store...Ch. 5 - Prob. 2BTN Ch. 5 - Prob. 5BTN

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