menu
bartleby
search
close search
Hit Return to see all results
Subscribe
Sign in

Business
AccountingIntermediate Accounting: Reporting And Analysis3rd Edition

close solutoin list
Chapter 7, Problem 8C
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Solutions

Chapter
Section
Problem 1GI
Problem 2GI
Problem 3GI
Problem 4GI
Problem 5GI
Problem 6GI
Problem 7GI
Problem 8GI
Problem 9GI
Problem 10GI
Problem 11GI
Problem 12GI
Problem 13GI
Problem 14GI
Problem 15GI
Problem 16GI
Problem 17GI
Problem 18GI
Problem 19GI
Problem 20GI
Problem 21GI
Problem 22GI
Problem 23GI
Problem 24GI
Problem 25GI
Problem 26GI
Problem 27GI
Problem 28GI
Problem 29GI
Problem 30GI
Problem 1MC
Problem 2MC
Problem 3MC
Problem 4MC
Problem 5MC
Problem 6MC
Problem 7MC
Problem 8MC
Problem 9MC
Problem 10MC
Problem 1RE
Problem 2RE
Problem 3RE
Problem 4RE
Problem 5RE
Problem 6RE
Problem 7RE
Problem 8RE
Problem 9RE
Problem 10RE
Problem 11RE
Problem 12RE
Problem 13RE
Problem 14RE
Problem 15RE
Problem 1E
Problem 2E
Problem 3E
Problem 4E
Problem 5E
Problem 6E
Problem 7E
Problem 8E
Problem 9E
Problem 10E
Problem 11E
Problem 12E
Problem 13E
Problem 14E
Problem 15E
Problem 16E
Problem 17E
Problem 18E
Problem 19E
Problem 20E
Problem 21E
Problem 22E
Problem 1P
Problem 2P
Problem 3P
Problem 4P
Problem 5P
Problem 6P
Problem 7P
Problem 8P
Problem 9P
Problem 10P
Problem 11P
Problem 12P
Problem 13P
Problem 14P
Problem 15P
Problem 16P
Problem 17P
Problem 1C
Problem 2C
Problem 3C
Problem 4C
Problem 5C
Problem 6C
Problem 7C
Problem 8C
Problem 11C
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
1 views

Analyzing Starbucks’s Inventory Disclosures Obtain Starbucks’s 2017 annual report either using the “Investor Relations” portion of its web site (do a Web search for Starbucks investor relations) or go to http://www.sec.gov and click “Search for company filings” under “Filings and Forms (EDGAR).”

Required:

  1. 1. What is the primary cost flow assumption that Starbucks uses: Discuss how the amounts reported under this assumption compare to amounts reported under alternative cost flow assumptions. Explain why you think Starbucks selected this method.
  2. 2. What type of inventory system—perpetual or periodic—do you think Starbucks uses?
  3. 3. Does Starbucks have any purchase commitments? If so, are they included in inventory?
  4. 4. Assume ending inventory for 2016 was $1,306.4 million. Compute the inventory turnover ratio for 2018 and 2017. What is your evaluation of the difference? (Round your answer to two decimal places.)
  5. 5. Recreate summary journal entries to record the transactions that affected inventory during 2018. (Assume all inventory purchases were on account.)

1.

To determine

Determine the primary cost flow assumption used by Corporation S. Explain the manner in which the amounts reported under this cost flow assumption are different under alternative cost flow assumptions and also explain the reasons behind the selection of the cost flow assumption by Corporation S.

Explanation

Inventory cost flow assumptions: These are the methods used by the companies to compute the cost assigned to inventory from the time inventory is bought to the time inventory is sold.

Corporation S primarily uses a moving average cost flow assumption. Since, the prices of the goods are based on an average of the goods available for sale...

2.

To determine

Identify the type of inventory system used by Corporation S.

3.

To determine

Identify whether Corporation S has purchase commitments and whether it is included in inventory or not.

4.

To determine

Compute the inventory turnover ratio for 2018 and 2017.

5.

To determine

Prepare summary journal entries to record the transactions that affected the inventory during the year.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution
arrow_back
Chapter 7,
Problem 7C
Chapter 7,
Problem 11C
arrow_forward

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 7 Solutions

Show all chapter solutions add
Ch-7 P-1GICh-7 P-2GICh-7 P-3GICh-7 P-4GICh-7 P-5GICh-7 P-6GICh-7 P-7GICh-7 P-8GICh-7 P-9GICh-7 P-10GI
Ch-7 P-11GICh-7 P-12GICh-7 P-13GICh-7 P-14GICh-7 P-15GICh-7 P-16GICh-7 P-17GICh-7 P-18GICh-7 P-19GICh-7 P-20GICh-7 P-21GICh-7 P-22GICh-7 P-23GICh-7 P-24GICh-7 P-25GICh-7 P-26GICh-7 P-27GICh-7 P-28GICh-7 P-29GICh-7 P-30GICh-7 P-1MCCh-7 P-2MCCh-7 P-3MCCh-7 P-4MCCh-7 P-5MCCh-7 P-6MCCh-7 P-7MCCh-7 P-8MCCh-7 P-9MCCh-7 P-10MCCh-7 P-1RECh-7 P-2RECh-7 P-3RECh-7 P-4RECh-7 P-5RECh-7 P-6RECh-7 P-7RECh-7 P-8RECh-7 P-9RECh-7 P-10RECh-7 P-11RECh-7 P-12RECh-7 P-13RECh-7 P-14RECh-7 P-15RECh-7 P-1ECh-7 P-2ECh-7 P-3ECh-7 P-4ECh-7 P-5ECh-7 P-6ECh-7 P-7ECh-7 P-8ECh-7 P-9ECh-7 P-10ECh-7 P-11ECh-7 P-12ECh-7 P-13ECh-7 P-14ECh-7 P-15ECh-7 P-16ECh-7 P-17ECh-7 P-18ECh-7 P-19ECh-7 P-20ECh-7 P-21ECh-7 P-22ECh-7 P-1PCh-7 P-2PCh-7 P-3PCh-7 P-4PCh-7 P-5PCh-7 P-6PCh-7 P-7PCh-7 P-8PCh-7 P-9PCh-7 P-10PCh-7 P-11PCh-7 P-12PCh-7 P-13PCh-7 P-14PCh-7 P-15PCh-7 P-16PCh-7 P-17PCh-7 P-1CCh-7 P-2CCh-7 P-3CCh-7 P-4CCh-7 P-5CCh-7 P-6CCh-7 P-7CCh-7 P-8CCh-7 P-11C

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

MODIFIED ACCELERATED COST RECOVERY SYSTEM Using the information given in Exercise 5Apx-1A and the rates shown i...

College Accounting, Chapters 1-27

Budgeted income statement and supporting budgets for three months Newport Inc. gathered the following data for ...

Financial And Managerial Accounting

The following describes the information system for a supermarket: Customers push their shopping carts to the ch...

Accounting Information Systems

(Appendix 10A) Which of the following is true concerning labor variances that are not material in amount? a. Th...

Managerial Accounting: The Cornerstone of Business Decision-Making

How are cost of production reports used for controlling and improving operations?

Financial & Managerial Accounting

Journal entries and trial balance On August 1, 2019, Rafael Masey established Planet Realty, which completed th...

Accounting

Appendix 1 Closing entries from an end-of-period spreadsheet Based on the data in Exercise 4-22, prepare the cl...

Corporate Financial Accounting

Dexter Industries purchased packaging equipment on January 8 for 72,000. The equipment was expected to have a u...

Financial Accounting

Search online for information about microfinance in developing countries. What are the potential benefits? What...

Economics:

How do we measure labor productivity? How do changes in labor productivity affect theU.S. standard of living?

ECON MACRO

Imagine that business people from a high context culture (e.g. Japan or China) meet their counterparts from a l...

Essentials of Business Communication (MindTap Course List)

(Cooperatives) How do cooperatives differ from typical businesses?

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

How does short-term financing differ from long-term financing? Give two business uses for each type of financin...

Foundations of Business (MindTap Course List)

(Collusion and Cartels) Use revenue and cost curves to illustrate and explain the sense in which a cartel behav...

ECON MICRO

Discuss the following statement: All else equal, firms with relatively stable sales are able to carry relativel...

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

Explain the meaning of nominal interest rate and real interest rate. How are they related?

Brief Principles of Macroeconomics (MindTap Course List)

Why is frictional unemployment inevitable? How might the government reduce the amount of frictional unemploymen...

Principles of Macroeconomics (MindTap Course List)

Discuss the profound impact of the Internet on marketing research

MKTG 12:STUDENT ED.-TEXT

9. Harley-Davidson, which once boasted that it made "big toys for big boys," is trying to lure more women to th...

Management, Loose-Leaf Version

Why is a country better off not isolating itself from all other countries? Why do we have markets, and accordi...

Principles of Microeconomics (MindTap Course List)

Study Figure 15.8, showing the level 0 DFD of the cost accounting system. Note that the raw materials and finis...

Accounting Information Systems

The Bureau of Transportation Statistics Omnibus Household Survey is conducted annually and serves as an informa...

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Contrast the focus of marketing activities during the five eras of marketing history.

Contemporary Marketing

FV OF UNEVEN CASH FLOW You want to buy a house within 3 years, and you are currently saving for the down paymen...

Fundamentals of Financial Management (MindTap Course List)

A small town is served by many competing supermarkets, which have the same constant marginal cost. a. Using a d...

Principles of Economics (MindTap Course List)

Why do economists make assumptions?

Essentials of Economics (MindTap Course List)

Cash flows from operating activitiesindirect method The net income reported on the income statement for the cur...

Financial & Managerial Accounting

Explain how a trial balance and a balance sheet differ.

College Accounting (Book Only): A Career Approach

Using the data in Exercise 9-15, assume that during the second year of operations, Macks Plumbing Supply Co. ha...

Financial Accounting

Compute bond proceeds, amortizing discount by interest method, and interest expense Boyd Co. produces and sells...

Accounting (Text Only)

INTEREST RATE DETERMINATION AND YIELD CURVES a. What effect would each of the following events likely have on t...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Table 1.7 shows data for seven colleges and universities. The endowment (in billions of dollars) and the percen...

Statistics for Business & Economics, Revised (MindTap Course List)

Use the diagram to answer the following question (a-c) a. At the initial equilibrium price, what area represent...

Exploring Economics

What are the three inventories needed in a manufacturing business?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Complete the following equations: Assets of 40,000 = Liabilities of 17,200 + Owners Equity of _____ Assets of _...

College Accounting (Book Only): A Career Approach

In the physical implementation depicted in Figure 13.10 (pg. 516), the payment order and the RA were sent toget...

Pkg Acc Infor Systems MS VISIO CD

EXCHANGE RATES Use the foreign exchange section of a current issue of The Wall Street Journal to look up the si...

Fundamentals of Financial Management (MindTap Course List)

A German worker takes 400 hours to produce a car and 2 hours to produce a case of wine. A French worker takes 6...

Principles of Macroeconomics (MindTap Course List)

Income statement, retained earnings statement, and balance sheet The amounts of the assets and liabilities of G...

Survey of Accounting (Accounting I)

Indicate how prior period adjustments would be reported on the financial statements presented only for the curr...

Corporate Financial Accounting

Harrington Company is giving each of its employees a holiday bonus of 250 on December 13 (a nonpayday). The com...

PAYROLL ACCT.,2019 ED.(LL)-TEXT

What is the difference between the equation of exchange and the simple quantity theory of money?

Economics (MindTap Course List)

Explain why the timing and quantity of cash flows are important in capital investment decisions.

Cornerstones of Cost Management (Cornerstones Series)

Project Selection AT Ewing Natural Gas This is an extension of Case 2.1 from Chapter 2, so you should read that...

Practical Management Science

Define each of the following terms: a. Contraction b. Business cycle c. Trough d. Disposable income e. Net dome...

Macroeconomics

Insert needed commas. Write correct if you find no errors. The employee who is featured in our latest televisio...

Bcom

What is the present value of 1,000 two years from today if the interest rate is 5 percent?

Microeconomics

Opponents of increasing the tax on gasoline argue that the big oil companies just pass the tax along to the con...

Economics For Today

What form of countertrade appears to offer the most purchase flexibility? Why?

Purchasing and Supply Chain Management

bartleby
© bartleby 2019