Cengagenowv2, 1 Term Printed Access Card For Wahlen/jones/pagach’s Intermediate Accounting: Reporting And Analysis, 2017 Update, 2nd
2nd Edition
ISBN: 9781337912259
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 8, Problem 10C
1.
To determine
Indicate the classifications used by S Corporation to value its inventory.
2.
To determine
Explain how S Corporation valuing its inventory.
3.
To determine
Find out the amount of inventory write-downs for the year 2013 and indicate which method used by S Corporation for write-downs its inventory.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A company uses ABC analysis to help manage its inventory. Its current stock of inventory reflects the following iterns, itern value and quantity.
Click the icon to view company's inventory database.
Find the percentage input to the total dollar value for each item (enter your responses rounded to one decimal place)
% Dollar Value
Item Part
142-AZ
More Info
W
Item Part
142-AZ
4392-GF
86935-ES
173-DC
999-BA
7846-NM
2765-OP
103-VX
2648-YT
Item Cost ($)
564
46
16.00
647
193
20
367
11.50
16.50
Quantity
In-Stock
330
1,291
3,521
1,856
509
993
809
4,818
5,134
P
<-X
Access the company’s investor relations website or the SEC's EDGAR database (www.sec.gov/edgar.shtml).
Impact of Inventory Management on Financial Statements: Analyze how variations in inventory management practices impact a company's financial statements, specifically focusing on the Income Statement and Balance Sheet. Discuss how changes in inventory levels affect Cost of Goods Sold (COGS), Gross Profit, and Net Income. Use specific examples or excerpts from the same two (2) Annual Reports (Form 10-K) to support your analysis.
Discuss the challenges companies face when valuing their inventories for financial reporting purposes. How might different inventory valuation methods (e.g., FIFO, LIFO, weighted average) impact the accuracy of financial statements? Use examples or excerpts from the same two (2) Annual Reports (Form 10-K) to illustrate your points.
Comparative Analysis Across Industries: Compare the inventory turnover ratios and inventory management practices of two…
Access the company’s investor relations website or the SEC's EDGAR database (www.sec.gov/edgar.shtml).
Inventory Turnover Ratio Analysis: Calculate and interpret the Inventory Turnover ratio for a company of your choice that is listed on a major stock exchange (e.g., NYSE, NASDAQ). Begin by accessing the company's two (2) most recent Annual Reports (Form 10-K) from their investor relations website or the Securities and Exchange Commission's EDGAR database. Explain how to find and access this report. Then, calculate the Inventory Turnover ratio using the formula:
Inventory Turnover=Cost of Goods SoldAverage InventoryInventory Turnover= Cost of Good Sold/Average Inventory
Interpret what the ratio reveals about the company's efficiency in managing its inventory. Discuss factors that might influence the ratio and implications for the company’s operations.
Days' Sales in Inventory (DSI) Calculation and Analysis: Define Days' Sales in Inventory (DSI) and explain its significance in…
Chapter 8 Solutions
Cengagenowv2, 1 Term Printed Access Card For Wahlen/jones/pagach’s Intermediate Accounting: Reporting And Analysis, 2017 Update, 2nd
Ch. 8 - Prob. 1GICh. 8 - Define the upper and lower constraints used in the...Ch. 8 - How may a company apply the lower of cost or a...Ch. 8 - What is the major criticism of the lower of cost...Ch. 8 - Prob. 5GICh. 8 - Prob. 6GICh. 8 - Prob. 7GICh. 8 - Prob. 8GICh. 8 - What is the basic assumption underlying the gross...Ch. 8 - Prob. 10GI
Ch. 8 - Explain the meaning of the following terms:...Ch. 8 - Prob. 12GICh. 8 - Prob. 13GICh. 8 - The retail inventory method indicated an inventory...Ch. 8 - Prob. 15GICh. 8 - Indicate the effect of each of the following...Ch. 8 - Sienna Company uses the FIFO cost flow assumption....Ch. 8 - Prob. 2MCCh. 8 - Prob. 3MCCh. 8 - Prob. 4MCCh. 8 - Prob. 5MCCh. 8 - Under the retail inventory method, freight-in...Ch. 8 - The retail inventory method would include which of...Ch. 8 - Prob. 8MCCh. 8 - Estimates of price-level changes for specific...Ch. 8 - A company forgets to record a purchase on credit...Ch. 8 - The following information is available regarding...Ch. 8 - Each unit of Black Corporations inventory has a...Ch. 8 - Prob. 3RECh. 8 - Prob. 4RECh. 8 - Prob. 5RECh. 8 - Kays Beauty Supply uses the gross profit method to...Ch. 8 - Uncle Butchs Hunting Supply Shop reports the...Ch. 8 - Use the information in RE8-7. Calculate Uncle...Ch. 8 - Use the information in RE8-7. Calculate Uncle...Ch. 8 - Use the information in RE8-7. Calculate Uncle...Ch. 8 - Johnson Corporation had beginning inventory of...Ch. 8 - Prob. 12RECh. 8 - Prob. 13RECh. 8 - Prob. 14RECh. 8 - Lower of Cost or Market Stiles Corporation uses...Ch. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Gross Profit Method: Estimation of Theft Loss You...Ch. 8 - Retail Inventory Method Harmes Company is a...Ch. 8 - Prob. 10ECh. 8 - Retail Inventory Method The following information...Ch. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Errors A company that uses the periodic inventory...Ch. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Lower of Cost or Market Palmquist Company has five...Ch. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Retail Inventory Method Weber Corporation uses the...Ch. 8 - Prob. 10PCh. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Errors As controller of Lerner Company, which uses...Ch. 8 - Prob. 14PCh. 8 - (Appendix 8.1) Lower of Cost or Market The...Ch. 8 - Prob. 16PCh. 8 - Prob. 1CCh. 8 - Sandberg Paint Company, your client, manufactures...Ch. 8 - Prob. 3CCh. 8 - Prob. 4CCh. 8 - Prob. 5CCh. 8 - Prob. 6CCh. 8 - Prob. 7CCh. 8 - Various Inventory Issues Hudson Company, which is...Ch. 8 - Prob. 10CCh. 8 - Prob. 11C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Analyzing Starbuckss Inventory Disclosures Obtain Starbuckss 2017 annual report either using the Investor Relations portion of its web site (do a Web search for Starbucks investor relations) or go to http://www.sec.gov and click Search for company filings under Filings and Forms (EDGAR). Required: 1. What is the primary cost flow assumption that Starbucks uses: Discuss how the amounts reported under this assumption compare to amounts reported under alternative cost flow assumptions. Explain why you think Starbucks selected this method. 2. What type of inventory systemperpetual or periodicdo you think Starbucks uses? 3. Does Starbucks have any purchase commitments? If so, are they included in inventory? 4. Assume ending inventory for 2016 was 1,306.4 million. Compute the inventory turnover ratio for 2018 and 2017. What is your evaluation of the difference? (Round your answer to two decimal places.) 5. Recreate summary journal entries to record the transactions that affected inventory during 2018. (Assume all inventory purchases were on account.)arrow_forwardAnalyzing Moet Hennessy Louis Vuittons (LVMH) Inventory Disclosures Obtain Moet Hennessy Louis Vuittons 2017 annual report using the Investor Relations portion of its website (do a web search for Moet Hennessy Louis Vuitton investor relations). Required: 1. Describe the inventory of LVMH. 2. How does LVMH value its inventory other than wines? Why doesnt LVMH use LIFO? 3. How does LVMH value its wine inventory? What is the justification for this valuation? 4. Did LVMH record any inventory write-downs during the year? If so, what was the dollar amount and can any conclusions be drawn from the pattern or write-downs.arrow_forwardThe following data pertain to 2012 activities of Twisp Industries: Use your completed worksheet to determine the firms cost of goods sold for 2012. Remember to change the year in row 24 and to enter new beginning inventory balances. Save the 2012 file as MFG3. Print the worksheet when done. If sales and other expenses were identical in 2011 and 2012, during which year did Twisp earn more income? Why?arrow_forward
- What is the correct balance of inventory as of December 31, 2018? What is the correct 2018 gross profit?arrow_forwardFrom the information provided below can you please complete the given table using the FIFI method of inventory valuation.arrow_forwardUse the following excerpts from Jasper Company's financial statements and complete the worksheets below to determine cash paid to suppliers for inventory in 2018. From Balance Sheets: Inventory Accounts Payable Dec. 31, 2018 $35,000 22.000 Dec. 31, 2017 $31,000 20,500 2018 175,900 From Income Statement: Cost of Goods Sold PLEASE NOTE: You are to follow the format shown in the textbook. Step01: Inventory Purchased [ Select ] [ Select ] [ Select ] [ Select ] [ Select 1 [ Select ] [ Select 1 [ Select ] [ Select 1 [ Select ] Step02: Cash paid for Inventory Purchases [ Select ] [ Select ] | Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] | Select ] > > > > > > > > > > > > |> > > > >arrow_forward
- Accounting Compute for the net sales that would be reported in LIVA company's Income Statement. You are to be assigned to prepare the financial statement of LIVA Company for the year 2021. The following data were made available for you: Ending Inventory at Cost - 739, 160 Goods Available for Sale at retail - 3, 930, 000 Sales Discount - 16, 000 Net markdowns - 48, 500 Net markups - 30, 000 Beginning inventory at retail - 1, 450, 000 Purchases at retail - 2, 422, 000 The company adopts the average cost approach to estimate the value of its inventory and the cost ratio is computed at 68%.arrow_forwardPlease help me with show all calculation thankuarrow_forwardplease answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Johns Company adopts the dollar-value LIFO retail inventory method on January 1, 2016. The following information for 2016 is obtained from Johns' records: Cost Retail Inventory, January 1, 2016 $20,000 $29,000 Purchases 60,000 92,000 Net additional markups — 1,000 Net markdowns — 3,000 Sales — 75,000 The price index on January 1, 2016, was 100, and on December 31, 2016, it was 110. Required: Compute the cost of the inventory on December 31, 2016. Round the cost-to-retail ratio to three decimal places. JOHNS COMPANY Calculation of cost of inventory using Dollar-Value LIFO December 31, 2016 Cost Retail $ $ $ $ $ $ Ending inventory at retail $ Ending inventory at cost $arrow_forward
- question answer....arrow_forwardHow do retail companies correctly match expenses with revenue for the period to get an accurate net income? a. With a modern POS system. b. With the consistency principle. c. With a goods-on-hand estimate from the Controller. d. With a physical inventory. According to the Home Depot’s financial statement example provided by the author, which is the predominant method of inventory valuation used by the company? a. FIFO b. LIFO c. NRV d. LCM please provide me a coerrect answer explains tep by steparrow_forwardPlease complete the table using the FIFO method of inventory valuation - all info provided attached.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
IAS 29 Financial Reporting in Hyperinflationary Economies: Summary 2021; Author: Silvia of CPDbox;https://www.youtube.com/watch?v=55luVuTYLY8;License: Standard Youtube License