INTERMEDIATE ACCOUNTING <CUSTOM LL>
10th Edition
ISBN: 9781260887068
Author: SPICELAND
Publisher: MCG CUSTOM
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Chapter 8, Problem 8.9DMP
Real World Case 8–9
Effects of
• LO8–4, LO8–5, LO8–7
Real World Financials
EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submission by companies and others who are required by law to file forms with the U.S. Securities and Exchange Commission (SEC). All publicly traded domestic companies use EDGAR to make the majority of their filings. (Some foreign companies file voluntarily.) Form 10-K, which includes the annual report, is required to be filed on EDGAR. The SEC makes this information available on the Internet.
Required:
1. Access EDGAR on the Internet. The web address is www.sec.gov.
2. Search for Whole Foods Market, Inc. Access the 10-K filing for the most recent fiscal year. Search or scroll to find the financial statements and related notes.
3. Answer the following questions related to the company’s inventories:
a. What method(s) does the company use to value its inventories?
b. Calculate what cost of sales would have been for the year if the company had used FIFO to value its inventories.
c. Calculate inventory turnover for the year using the reported numbers.
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[The following information applies to the questions displayed below.]
You have been given responsibility for overseeing a bank's small business loans division. The bank has included loan
covenants requiring a minimum current ratio of 3.00 in all small business loans. When you ask which inventory costing
method the covenant assumes, the previous loans manager gives you a blank look. To explain to him that a company's
inventory costing method is important, you present the following balance sheet information.
Current assets other than inventory
Inventory
Other (noncurrent) assets
Total assets
Current liabilities
Other (noncurrent) liabilities
Stockholders' equity
Total liabilities and stockholders' equity
$ 15
(a)
117
$ (b)
$ 46
54
(d)
$ (c)
You ask the former loans manager to find amounts for (a), (b), (c), and (d) assuming the company began the year with 7
units of inventory at a unit cost of $14, then purchased 10 units at a cost of $15 each, and finally…
Intermediate Accounting 105
Please, may I have my own explanation to the computation workings for this problem?
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Chapter 8 Solutions
INTERMEDIATE ACCOUNTING <CUSTOM LL>
Ch. 8 - Describe the three types of inventory of a...Ch. 8 - What is the main difference between a perpetual...Ch. 8 - The Cloud Company employs a perpetual inventory...Ch. 8 - The Bockner Company shipped merchandise to Laetner...Ch. 8 - What is a consignment arrangement? Explain the...Ch. 8 - Prob. 8.6QCh. 8 - The Esquire Company employs a periodic inventory...Ch. 8 - Prob. 8.8QCh. 8 - Its common in the electronics industry for unit...Ch. 8 - Explain why proponents of LIFO argue that it...
Ch. 8 - Prob. 8.11QCh. 8 - Describe the ratios used by financial analysts to...Ch. 8 - Prob. 8.13QCh. 8 - Prob. 8.14QCh. 8 - The Austin Company uses the dollar-value LIFO...Ch. 8 - Identify any differences between U.S. GAAP and...Ch. 8 - Determining ending inventory; periodic system ...Ch. 8 - Prob. 8.2BECh. 8 - LIFO method LO84 AAA Hardware uses the LIFO...Ch. 8 - LIFO liquidation LO86 Refer to the situation...Ch. 8 - Prob. 8.11BECh. 8 - Perpetual inventory system; journal entries LO81...Ch. 8 - Prob. 8.2ECh. 8 - Perpetual and periodic inventory systems compared ...Ch. 8 - Prob. 8.5ECh. 8 - Physical quantities and costs included in...Ch. 8 - FASB codification research LO82, LO83 Access the...Ch. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Prob. 8.15ECh. 8 - Prob. 8.16ECh. 8 - Prob. 8.19ECh. 8 - Prob. 8.20ECh. 8 - Prob. 8.21ECh. 8 - Prob. 8.23ECh. 8 - Prob. 8.25ECh. 8 - Prob. 8.30ECh. 8 - Prob. 8.31ECh. 8 - Various inventory transactions; journal entries ...Ch. 8 - Prob. 8.3PCh. 8 - Prob. 8.4PCh. 8 - Various inventory costing methods LO81, LO84...Ch. 8 - Prob. 8.6PCh. 8 - Prob. 8.9PCh. 8 - Prob. 8.16PCh. 8 - Prob. 8.1DMPCh. 8 - Real World Case 82 Physical quantities and costs...Ch. 8 - Prob. 8.4DMPCh. 8 - Prob. 8.5DMPCh. 8 - Prob. 8.8DMPCh. 8 - Real World Case 89 Effects of inventory valuation...Ch. 8 - Communication Case 810 Dollar-value LIFO method ...Ch. 8 - Prob. 1CCTCCh. 8 - Prob. 2CCTC
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