7-33Chapter 7 Reporting and Analyzing Inventorya.b.C.Construct a projected balance sheet as of the end of December, Year 1.Construct financial forecasts of income statements, cash flows (direct method) and balancesheets for the next three years (through Year 4). Assume that your business would operate in atax jurisdiction that requires the use of FIFO for inventory. Would this opportunity meet yourfinancial objective?Suppose that your business would operate in a tax jurisdiction that allowed the use of LIFO forinventory. Would this opportunity meet your financial objective? Why?Ⓒ Cambridge Business PublishersLO7-2 M7-20. Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average CostAssume that Gode Company reports the following initial balance and subsequent purchase ofinventory.Beginning inventory...Inventory purchased during the year.Cost of goods available for saleb.2,500 units @ $100 each5,000 units @ $150 each7,500 unitsAssume that 4,250 units are sold during the year. Compute the cost of goods sold for the year andthe balance reported as ending inventory on its year-end balance sheet under the following inven-tory costing methods:a.FIFOLIFOAverage cost$ 250,000750,000$1,000,000C.

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Description: 7-33Chapter 7 Reporting and Analyzing Inventorya.b.C.Construct a projected balance sheet as of the end of December, Year 1.Construct financial forecasts of income statements, cash flows (direct method) and balancesheets for the next three years (thr

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LO7-2 M7-20. Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost Assume that Gode Company reports the following initial balance and subsequent purchase of inventory. MBC Beginning inventory.... Inventory purchased during the year Cost of goods available for sale... 2,500 units @ $100 each 5,000 units @ $150 each 7,500 units $ 250,000 750,000 $1,000,000 Assume that 4,250 units are sold during the year. Compute the cost of goods sold for the year and the balance reported as ending inventory on its year-end balance sheet under the following inven- tory costing methods: a. FIFO b. LIFO c. Average cost

LO7-2 M7-20. Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost Assume that Gode Company reports the following initial balance and subsequent purchase of inventory. MBC Beginning inventory.... Inventory purchased during the year Cost of goods available for sale... 2,500 units @ $100 each 5,000 units @ $150 each 7,500 units $ 250,000 750,000 $1,000,000 Assume that 4,250 units are sold during the year. Compute the cost of goods sold for the year and the balance reported as ending inventory on its year-end balance sheet under the following inven- tory costing methods: a. FIFO b. LIFO c. Average cost

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 5PB: Financial information for Lighthizer Trading Company for the fiscal year-ended September 30, 20xx,...

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Accountants at UltraTech obtain their values for inventory and total assets, calculate the balance sheet percentage by dividing inventory by total assets for each year and summarize the observations for the relative size of inventory to total assets for each year and percentage change from year-to-year. This would allow them to effectively assess: a. Inventory control compared to competitorsb. If there is an effective return on assetsc. If inventory is being properly managedd. How they are managing liabilities
Answer questions 22-30 using the following information: Foreign Sales. General Administrative Expenses. Inventory... Legal Réserves.. Marketing, Sales & Delivery Exp. Notes Payable. Prepaid Éxpenses(ST). Provision for Loss on Inventories. Sales Discounts. Sales Returns. Software.. Statutory Reserves. Subsidiaries.. Uneamed Revenue. Accounts Payable. Accounts Receivable.. ..8.000 .13.000 ..200 10.000 .18.000 Allowance for Doubtful Accounts...2.000 20.000 30.000 .8.000 .100.000 124.000 40.000 ..16.000 36.000 200 .24.000 TL .1.800 .3.000 ..2.000 .4.000 ..6.000 .1.000 .1.000 10.000 .10.000 ..2.200 .1.200 .28.000 .20.000 Accumulated Amortization. Accumulated Depreciation. Additional Paid-in Capital. Associates... Bank Loans(LT). Bank Loans(ST). Building.. Capital. Cash Cost of Goods Sold. Domestic Sales. Financing Expenses.. 22. The Turkish Lira value of the net realizable value of the accounts receivable is a. 13.000 TL b2.000 TL c. 15.000 TL d. 11.000 TL 23. The Turkish Lira value of…
Question 2Alex is currently considering to invest his money in one of the companies between Company A and Company B. The summarized final accounts of the companies for their last completed financial year are as follows: a. Calculate the following ratios for Company A and Company B. State clearly the formulae used for each ratio: i. Gross Profit Marginii. Net Profit Marginiii. Inventory Turnover Period (days)iv. Receivables Collection Period (days)
6. The following is the adjusted trial balance data for Nino's Pizzenia as of December 31, 2019. NINO'S PIZZERIA Adjusted Trlal Balance Year Ended December 31,2019 Debit Credit S 775,984 45,688 200,460 135,624 Cash Accounts Receivable Buildings Merchandise Inventory Accounts Payable Common Stock Sales Interest Revenue Rent Revenue Sales Salaries Expense office Supplies Expense Sales Discounts Interest Expense Sales Returns and Allowances, Cost of goods sold Rent Expense Depreciation Expense: Office Equipment Insurance Expense Advertising Expense Totals $437,880 410,542 555,696 84,652 86,900 24,500 6,270 102,890 4,577 105.854 122,853 20.000 10.555 2,780 17:635 $1,575,670 $1,575,670
You have been hired as a financial analyst of a firm and your team is working on an independent assessment of XYZ Inc. Your assistant has provided you with the following data for XYZ Inc. and their industry. R r e d : Ratio 2020 2019 2018 2020- Industry Average Inventory Turnover 62.65 42.42 32.25 53.25 Receivables in days 94 63 50 115 Debt to Equity 0.75 0.85 0.90 0.88 Quick Ratio 1.028 1.03 1.029 1.031 Current Ratio 1.33 1.21 1.15 1.25 Required: a) In annual report of firm CEO wrote, we had higher liquidity largely due to an increase in highly liquid current assets (cash, account receivable and short-term marketable securities). Is the CEO correct? b) what can you say about the firm's collection period and inventory turnover?
Projecting NOPAT and NOA Using Parsimonious Forecasting Method Following are Logitech's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) for its fiscal year ended March 31, 2019 ($ thousands). Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places. Financial information Net sales Net operating profit after tax (NOPAT) Net operating assets (NOA) $2,788,322 211,362 571,823 Use the parsimonious method to forecast Logitech's sales, NOPAT, and NOA for fiscal years ended March 31, 2020 through 2023 using the following assumptions. Note: Complete the entire question in Excel (template provided above). Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers. Then enter the answers into the provided spaces below with two decimal places_. Note: When completing the question…
Projecting NOPAT and NOA Using Parsimonious Forecasting Method Following are Logitech's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) for its fiscal year ended March 31, 2019 ($ thousands). Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places. Financial information Net sales Net operating profit after tax (NOPAT) Net operating assets (NOA) $2,091,242 158,522 428,867 Use the parsimonious method to forecast Logitech's sales, NOPAT, and NOA for fiscal years ended March 31, 2020 through 2023 using the following assumptions. Note: Complete the entire question in Excel (template provided above). Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers. Then enter the answers into the provided spaces below with two decimal places_. Note: When completing the question…
Financial information for Lighthizer Trading Company for the fiscal year-ended September 30, 20xx, was collected. As part of a management training session, you have been asked to prepare an income statement format that will be used to distribute to management. Subtotals and totals are included in the information, but you will need to calculate the values. A. In the correct format, prepare the income statement using this information: B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $42,000 and 8% cost of capital. C. Prepare a short response to accompany the income statement that explains why uncontrollable costs are included in the income statement.
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Allowance method Using transactions listed in £6-S. indicate the effects of each transaction on the liquidity metric days’ sales in receivables and profiability metric return on sales.