Wal-Mart stores increased and the number of Sam’s stores increased. WalMart utilized an extensive distribution and tracking system to maintain optimal inventories at each store. They use the retail last-in‚ first-out (LIFO) inventory accounting method for the Wal-Mart Stores segment‚ cost LIFO for the SAM’S CLUB segment. For both financial reporting and tax purposes‚ Wal Mart used the accrual method of accounting and maintained a perpetual inventory system. Under the perpetual inventory system‚ the cost
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TRUE-FALSE—Conceptual 1. A company should abandon the historical cost principle when the future utility of the inventory item falls below its original cost. 2. The lower-of-cost-or-market method is used for inventory despite being less conservative than valuing inventory at market value. 3. The purpose of the “floor” in lower-of-cost-or-market considerations is to avoid overstating inventory. 4. Application of the lower-of-cost-or-market rule results in inconsistency because a company
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Dollar-Value LIFO Review Problem XYZ Company began operations on January 1‚ 2010‚ and uses the dollar-value LIFO method for externally reporting inventory. XYZ Company uses an external price index in its calculations. On January 1‚ 2010‚ XYZ Company had an inventory of $50‚000. The following information has been extracted from inventory records: Year Ended December 31 Ending Inventory at Year-End Costs Cost Index (Relative to Base Year) 2010 $56‚160 1.04 2011 $62‚700 1.10 2012
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Good to Great Book Review To transform a good company to great company is all manages’ dream‚ but only few of them make it. To find out the core factors which lead to a good company became a great company is very difficult‚ because in different era‚ different industry companies face different opportunities and threats. To begin the research for the Good-to-Great study‚ Jim Collins and his research team searched for companies that: performed at or below the general stock market for at least fifteen
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Racial Discrimination against African Americans in the U.S. Labor Market Josefina Anorga Carlos Albizu University Abstract The following work deals with racial discrimination against African Americans in the workplace. Terms as racial discrimination‚ racism‚ race and African Americans are going to be defined to a greater understanding of these. It presents different types of discrimination at work‚ statistics of the African American population who works in the U.S.‚ the way how it is changing
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accountingtools.com/periodic-inventory-systemThe most significant difficulty with a periodic inventory system is determining the value of inventory. The inventory accounting method most often used with a periodic inventory system is Last In/First Out (LIFO). Under LIFO it is assumed that the most recent purchases are the ones that are first used. The value of the ending inventory is based on the oldest costs for the materials still in inventory.Read more at:
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production activates deduction) + Life insurance proceeds (anything over cash surrender value) + Deferred gain on installment sale in year used + Carryovers NOL‚ charitable C/L in year used + Income tax refund + Organization expenses + Increase in LIFO recapture + Accelerated depreciation‚ bonus depreciation‚ and 179 expense 179 Expense for E&P Use: 1. ADS for depreciation 2. No bonus depreciation (additional 1st year depreciation) 3. 179 expense allowed to take‚ but must take over 5 years
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Charter Company 1. Calculate the following ratios for each year during the period 1980-1983. Comment on the trend indicated by each ratio with respect to the financial performance and condition of the Charter Company. A) Profitability: ROTA = EBIT/total assets 1980 = 145485/[(1728694+1746260)/2]= 8.37% 1981 = 155673/[(1541326+1746260/2] = 6.45% 1982 = 108180/[(1628046+1541326)/2] =6.83% 1983 = 133896/[(1813199+1628046)/2]=7.78% B) Turnover: Accounts Receivables turnover ratio = Net
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Chapter 1: Environment and Theoretical Structure of Financial Accounting Accounting Principles Board (APB) The Accounting Principles Board (APB) followed the CAP. Asset/liability approach With the asset/liability approach‚ recognition and measurement of assets and liabilities drives revenue and expense recognition. Auditors Auditors express an opinion on the compliance of financial statements with GAAP. Capital markets The capital markets provide a mechanism to help our economy allocate
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Accounting Study Guide for Test # 2 Topic 5: Financial Statement Analysis 5-1 (Q5-1) Explain in general terms the concept of return on investment. Why is this concept important in the analysis of financial performance? Return on investment measures profitability in relation to the amount of investment that has been made in the business. A company can always increase dollar profit by increasing the amount of investment (assuming it is a profitable investment). So‚ dollar profits are not necessarily
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