Concept explainers
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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- 12 - CODE AND NAME OF THE ACCOUNT WILL BE DEBT 102 02 X BANK DTH DOLAR XXX120 02 INTERNATIONAL BUYER XXX646 02 IR. CHANGE DIFFERENCE XXXWhich transaction does the journal entry belong to? A) Collection record of the export in the current periodB) Import fee transfer recordC) Foreign income registrationD) Recording of the return of the export priceE) Registration of collection in the next period of the exportarrow_forwardSh17 Please help me Solutionarrow_forwardQ16arrow_forward
- E 8-5 Inventory transactions; missing data • LO8-1 A company has the following information in its records. Certain data have been intentionally omitted ($ in thousands). Beginning inventory Cost of goods sold 2024 2025 2026 $ 7 $ ? $225 Ending inventory སྐྱི་ 627 621 ? 225 216 Cost of goods available for 876 ? 800 sale Purchases (gross) 630 ? 585 Purchase discounts 18 15 ? Purchase returns 24 30 14 Freight-in 13 32 16 Required: Determine the missing numbers. Show computations where appropriate.arrow_forward4G 4G 7:43 O 80 TP-PRELIMS.docx The adjusted account balances of UTV Corp. for the year ended December 31, 2020 are as follows: Cash and cash equivalents Bank overdraft P400,000 100,000 900,000 Accounts receivable Allowance for doubtful accounts 40,000 Raw materials Goods in process Finished goods Financial assets at fair value through other comprehensive income Land, at fair market value 12/31/20 Building Accumulated depreciation - building Plant and equipment Accumulated depreciation - plant and equipment Patent Goodwill, recognized in Jan. 2019 thru a business combination Note payable, bank - due June 30, 2021 560,000 600,000 1,400,000 2,500,000 1,000,000 6,000,000 1,600,000 2.400.000 400,000 800,000 1,400,000 1,300,000 Note payable, bank - due June 30, 2022 Accounts payable Employee benefit provisions Warranty liabilities Income tax payable Deferred tax liability Accumulated profits, January 1, 2020 Revaluation surplus on Land, January 1, 2020 Unrealized gain on financial assets,…arrow_forwardQ9arrow_forward
- Sh15arrow_forward8–6 Various inventory costing methods; gross profit ratio ● LO8–1, LO8–4, LO8–7 Topanga Group began operations early in 2024. Inventory purchase information for the quarter ended March 31, 2024, for Topanga’s only product is provided below. The unit costs include the cost of freight. The company uses a periodic inventory system to report inventory and cost of goods sold. Date of Purchase Units Unit Cost Total Cost Jan. 7 5,000 $4.00 $20,000 Feb. 16 12,000 4.50 54,000 March 22 17,000 5.00 85,000 Total purchases 34,000 $159,000 Sales for the quarter, all at $7.00 per unit, totaled 20,000 units leaving 14,000 units on hand at the end of the quarter. Required: Calculate Topanga’s gross profit ratio for the first quarter using: FIFO LIFO Average cost Comment on the relative effect of each of the three inventory methods on the gross profit ratio.arrow_forward33 - What is the record to be made when the company pays a debt that arises from the purchase of goods on credit, by paying a check from a customer by endorsement?A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT COMMERCIAL GOODS XX SELLERS XXB) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT SELLERS XX CHECKS RECEIVED XXC) THE CODE AND NAME OF THE ACCOUNT WILL BE DEBT COMMERCIAL GOODS XX CHECKS RECEIVED XXD) CODE AND NAME OF THE ACCOUNT WILL BE DEBT SELLERS XX CHECK GIVEN AND PAYMENT ORDERS. XXE) THE CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT CHECK GIVENarrow_forward
- 2225 4 points This is a multiple answer question. Duncan Company miscounted its ending inventory during the December 31, 2025 physical count. Which items will be wrong on the 2025 franciaments assuming this mistake is not discovered until the next year? (Choose all that apply). OA Inventory 8. Liabilities OC. Cost of goods sold OD.Net income OE. Noncurrent assetsarrow_forwardThe following information was extracted from the financial records of Mxo Limited at 28 February 2021, the end of the financial year. 2021 2020 R R Inventory 75 300 22 400 Other financial assets 130 000 125 000 Other financial liabilities 159 000 180 000 Trade receivables 57 300 47 400 Trade payables 32 900 28 500 Additional information: 1. The gross profit percentage is 38% on sales. 2. Purchases for the year amounted to R295 000 and 49% thereof were on credit. 3. Ratios reported in year ended 28 February 2020: Trade receivables collection period – 66.9 days Trade payables payment period – 64.9 days Inventory turnover rate – 6 times 4. Only 27% of the total sales were cash sales.arrow_forward2arrow_forward
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