Chapter 6, Problem 6.1EYCT

(a)

To determine

Annual Report: It is a comprehensive financial report that shows all the business activities that takes place throughout the previous financial year. Its purpose is to provide the complete financial information of a company’s financial activities to its users in order to help them analyze, and take well informed decisions.

Company A’s inventories at September 27, 2014 and September 26, 2015 in its consolidated balance sheet.

(b)

To determine

To Compute: The dollar amount of change and the percentage change in inventories between 2014 and 2015.

(c)

To determine

The method of valuation of inventories, and the method of inventory cost flow used by Incorporation A.

(d)

To determine

The cost of sales reported by Incorporation A for 2015, 2014, and 2013.