following transactions are related to Parashanlal Merchandizing Company. Income Tax is 10%; operating expenses are Rps 10‚000. Compute Net Income‚ and calculate the value of inventory remaining at the end of the month using the following methods: 1 LIFO 2 FIFO 3 Weighted Average Method No. | Date | Particulars | 01 | Jan 01 | Rps 100‚000 worth of inventory remaining from last years‚ which was bought at Rps 50 per KG. | 02 | Jan 01 | Bought 3000 Kg at Rps 60 per kg. | 03 | Jan 02 |
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addition‚ because I was an extra worker for them‚ I found that everyone had a lot more time than usual to get work done and stop to explain things to me or answer questions. I had a lot of interactions with the pharmacist and technicians while at Walgreens. I was constantly going back and forth between different employees as they were working on different things and very eager to show me what they were doing and to let me try. I learned about
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lower-of-cost-or-market‚ inventory turnover‚ days? sales in inventory‚ and LIFO reserve. 2. Know how to compute the cost of ending inventory and the cost of merchandise sold using FIFO‚ LIFO‚ and average cost. 3. What is the cost of merchandise available for sale? 4. Know the effect on cost of ending inventory and cost of merchandise sold when using FIFO‚ LIFO‚ and average cost when prices are increasing. Which one‚ FIFO or LIFO‚ gives the higher cost of merchandise sold and which one the
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example of valuation methods of accounting principles that evaluate the value of inventory are the FIFO and LIFO method. There are several differences between FIFO and LIFO approach‚ so it can be two different balances for the same inventory depending on the valuation method. Therefore‚ a financial statement can be affected dramatically by switching form FIFO to LIFO. When switching from FIFO to LIFO‚ an entity needs to consider whether it is essential to restate its financial data for previous years to
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Porter’s Five Forces Forces Grade Note Segment Rivalry Strong The current market is divided between a few powerful competitors that can relatively easily attract customers from one another as the switching costs are low and practical absence of product differentiation contributes to the easy loss of market share. Threat of Mobility Weak While the new entrants only need a relatively simple GUI and a supplier in order to enter the market‚ the federal and local regulations will require significant
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products‚ along with goods in the process of becoming finished products and the finished products themselves. Inventory usually comprises a significant portion of total assets. There are three main methods for calculating inventory: Last-in‚ First-out (LIFO); First-in‚ First-out (FIFO); and Average Cost Method (AVCO). Because the cost of raw materials can change over time‚ even during the same accounting
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Business Administration. (2010) Retrieved from http://www.sba.gov/idc/groups/public/documents/sba_homepage/pub_mp22.pdf on 11/20/2010 Stevenson‚ W The Associated Press (2006). Walmart trims inventory. Retrieved from http://www.msnbc.msn.com/id/12288224 Walgreens accelerates openings
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of the primary benefits of using FIFO when inventory costs are rising is that it results in greater tax savings. True False 18. The LIFO conformity rule requires a company that uses LIFO for tax reporting to use FIFO for financial reporting. True False 19. The LIFO reserve is the additional amount of inventory a company would report if it used FIFO instead of LIFO. True False 20. Using a perpetual inventory system‚ the purchase of inventory is recorded with a debit to the Purchases account‚ which
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Case：Sears‚ Roebuck and Co. vs. Wal-Mart Stores‚ Inc. Financial Statement Case analysis 1． How do the retailing strategies of Sears and Wal-Mart differ? How does each firm operate their business/attempt to create value? The two companies differs in retailing strategy in two ways. 1. Credit sales boost sales greatly in Sears‚ not in Wal-mart Since 1992 when Arthur C. Martinez was brought on board to head Sears’s retailing operations‚ credit sales‚ especially through the use of the
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Financial Statement Analysis K R Subramanyam John J Wild McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies‚ Inc. All rights reserved. 4-2 Analyzing Investing Activities 4 CHAPTER 4-3 Current Asset Introduction Classification Current (Short-term) Assets Resources or claims to resources that are expected to be sold‚ collected‚ or used within one year or the operating cycle‚ whichever is longer. Noncurrent (Longterm) Assets Resources or claims to resources
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