Directions Before beginning the discussion, compute for each year Costco's: gross margin percentage (carry to one decimal point). • return on assets percentage (carry to one decimal point). inventory turnover ratio, and average days to sell inventory. . . (Later provide your calculations when responding to a discussion question.) Costco Wholesale Corporation operated 787 stores as of September 1, 2019. The following data were taken from the company's annual report. All dollar amounts are in millions. Fiscal Year Ending Net sales Cost of goods sold Net income Merchandise inventory Fiscal Years Ending 12/31/2019 $ 152,903 132,886 3,659 11,395 12/31/2018 $ 141,576 123,152 3,134 11,040 Discussion Questions 1. Based on Costco's gross margin and return on sales percentages, did its performance improve in 2019? Explain

Directions Before beginning the discussion, compute for each year Costco's: gross margin percentage (carry to one decimal point). • return on assets percentage (carry to one decimal point). inventory turnover ratio, and average days to sell inventory. . . (Later provide your calculations when responding to a discussion question.) Costco Wholesale Corporation operated 787 stores as of September 1, 2019. The following data were taken from the company's annual report. All dollar amounts are in millions. Fiscal Year Ending Net sales Cost of goods sold Net income Merchandise inventory Fiscal Years Ending 12/31/2019 $ 152,903 132,886 3,659 11,395 12/31/2018 $ 141,576 123,152 3,134 11,040 Discussion Questions 1. Based on Costco's gross margin and return on sales percentages, did its performance improve in 2019? Explain

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 58E: Analyzing Inventory The recent financial statements of McLelland Clothing Inc. include the following...

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RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.
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