For a company like Best Buy, what does the balance of Cost of Goods Sold in the income statement represent? What does the balance of Inventory in the balance sheet represent?

Q: How is Day Sales in Inventory calculated?

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: How are days’ sales in inventory calculated, and what does it measure?

A: Numbers of days to sell inventory: This ratio is determined as the number of days a particular…

Q: How do you measure gross margin return on inventory(GMROI)?

A: GMROI is a measure of inventory profitability where, it measures how much profit does the sales…

Q: For each of the following, indicate whether it would be reported on the balance sheet (B/S),reported…

A: A balance sheet is a financial statement which reports the closing balances of  Assets, Liabilities…

Q: Which type of company would report merchandise inventory as a line item on their balance sheet?…

A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…

Q: which of the following would be considered in the calculation of gross profit?  Sales and returns…

A: Gross Profit is the operating profit calculated by deducting the cost of goods sold from the revenue…

Q: _____________________figures from a firm’s financial statements should be used as its flow rate when…

A: The Answer :

Q: Explanation consideration for business while d a inventory system from  lifo fifo and weighted…

A: LIFO (Last in first out) LIFO is used to place an accounting value of inventories. It is based on…

Q: How much is the total cost of inventory to be presented in the financial position of XYZ?

A: Inventory valuation is done by the Business Entity as per the rules prescribed under the Relevant…

Q: How is inventory turnover calculated, and what does it measure?

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: Which of the following is true of the income statement? O Net income equals the amount of cash…

A: Under the accrual concept of accounting, expenses and revenues are recognized to the period in which…

Q: is a measure of inventory profitability that relates a gross margin to the cost of the inventory.

A: Inventory profitability means profits related to inventory cost which are calculated using these two…

Q: Calculation of Net income and Cost of Goods Sold

A: The cost of goods manufactured (COGM) is the sum of the cost of direct labor used, the cost of…

Q: At what amount will the inventory and cost of goods sold amounts be reported on the financial…

A: As per the accounting standards, the closing inventory must be reported at lower of cost or net…

Q: Why would a company choose to use an inventory costing method that estimates the cost of the goods…

A: In this question, we  explain that why would a company choose to use an inventory costing method…

Q: his account is used to recognize the cost of an inventory that is sold as expens

A: Solution: When inventory is sold, then this cost should be transferred to Cost of goods sold…

Q: What does the inventory turnover ratio mean?

A: Inventory turnover ratio gives the days required for the company from the date of its purchase to…

Q: The following information is taken from a company's records. Cost Market value per Unit per Unit…

A: Under the lower of cost & market value method, the per-unit value that is lesser between cost…

Q: nsidered when not only counting inventory, but likewise in the final valuation of inventory?  Why is…

A: Inventory is the goods lying in the stock of the entity which is either purchased or produced, ready…

Q: What's the difference between the cost to inventory and the cost of goods sold?

A: Cost of inventory refers to the cost of goods purchased. It is those costs which includes cost of…

Q: How do calculate the Cost of Goods Sold without the beginning inventory nor the ending inventory??

A: Cost of goods sold is the total costs incurred on those units of goods or products which are sold by…

Q: When preparing interim financial statements, what two methods can companies utilize to estimate cost…

A:

Q: What is the amount of Oriole company's inventory?

A: Valuation of Inventory: When a company is compiling its financial accounts, one of the accounting…

Q: Which inventory cost appears as a Cost of goods sold in an Income statement under FIFO method?

A: “First-In, First-Out” is a method used for cost flow assumption purposes in the cost of goods sold…

Q: Income Summary is closed to what account Income accounts O Expense Accounts Owner's equity account O…

A: all the incomes and expenses are closed by transferring the accounts to the income statement. The…

Q: 2. When Inventory is sold, how is the cost of goods sold account affected? Briefly explain

A: Inventory is an asset which is recorded in the balance sheet . It is the merchandise owned by the…

Q: Using the LIFO​ method, calculate the cost of ending inventory and cost of goods sold for Cambell…

A: The question is based on the Concept of Cost Accounting.

Q: How do I calculate cost of goods sold What numbers do I use to get finished goods inventory

A: Cost of Goods Sold : it the cost of goods which are sold. it is the original cost and does not…

Q: Explain how the inventory valuation method (LIFO or FIFO) chosen by a company affects the cost of…

A: Inventory management refers to the valuation of inventory in three ways FIFO, LIFO and weighted…

Q: What inventory accounts are used by a manufacturer? In what financial statement will appear?

A: An inventory account or merchandise inventory account is an account to record the inventory…

Q: How do you use FIFO and LIFO to calculate the cost of inventory?

A: Lets understand the meaning of LIFO and FIFO method. In First In First Out (FIFO) method company…

Q: How does the inventory method chosen can have a significant effect on the amount of income reported…

A: Inventory is an important asset for the business. And its accounting has two methods of inventory…

Q: s the cost of goods sold from the income statement part include the cost of goods in inventory?

A: Cost of Goods Sold=Beginning Inventory+Purchases for the period-Ending Inventory

Q: If a company understates its inventory, what are the effects on cost of goods sold and net income…

A: The cost of goods sold is calculated as difference between cost of goods available for sale and…

Q: What is Return on Assets? How do you calculate Inventory Turnover and The Number of Days' Sales in…

A: P

Q: Cost of Gross Sales Goods Sold Profit (Loss) Net Ending Beg Inventory Purchases Inventory Net Sales…

A: Formulas: Gross profit = Net sales - Cost of goods sold

Q: 1. Explain the effect of each inventory cost flow method on the company's net income 2. Recommed one…

A: There are primarily four type of inventory cost method- 1. First in first out method2. Last in first…

Q: NEED ANSWER ASAP Q: USING THE BALANCE SHEET PROVIDED, WHAT IS THE AVERAGE FINISHED GOODS INVENTORY?…

A: Finished goods inventory means amount of remaining unsold finished goods held by the business. This…

Q: How should accounting be able to catch up with the high sales return rates, particularly on…

A: Inventory management: Inventory management can be defined as a system to measure and record the…

Q: How do i calculate ending inventory and cost of goods sold using LIFO?

A: LIFO stands for last-in-first-out, in this method, goods which are produced at last are assumed to…

Q: 1. Which one of the following types of costs is most likely to be included in determining the cost…

A: Answer to the first question: The type of cost that is directly related to the cost of inventory is…

Q: Briefly describe the ratios that can be used to evaluate a company’s ability to sell merchandise…

A: The  ratios that point out the efficiency of company in “selling merchandise inventory and collect…

Q: In what ways are the inventory accounts of a retailing companydifferent from those of a…

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: The primary objective of inventory accounting is to a. Determine the peso amount at which inventory…

A: The accounting for inventory is something which is done with regard to maintenance or reporting of…

Q: how do I find the amount of inventory under the dollar value using the LIFO method?

A: Dollar value LIFO Method: Dollar value LIFO is a method which is basically used for inventory that…