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Using the data in M7-3, calculate to one decimal place the inventory turnover ratio and days to sell for Dillard's. In a recent year, Macy's reported an inventory turnover ratio of 3.1. Which company's inventory turnover is faster? E7-3 Inferring Missing Amounts Based on Income Statement Relationships Supply the missing dollar amounts for the 2008 income statement of Lewis Retailers for each of the following independent cases: Case Sales Beg Inv Purchases Goods Available Ending Inv COGS Gross Profit S & A Expenses Net Income A $800 $100 $700 $500 $200 B 900 200 700 150 0
Acc 2013, Chapter 7 Lab Practice (Phillips 3e) Page 6 of 12C 150 250 200 400 D 800 600 250 250 Applying Inventory Concepts E7-1 Items Included in Inventory PC Mall, Inc. is a direct marketer of computer hardware, software, peripherals, and electronics. In its 2008 annual report, the company reported that its revenue is “recognized upon receipt of the product by the customer” and that its “inventories include goods-in-transit to customers at December 31, 2008.” 1.Indicate whether PC Mall's sales terms are FOB shipping point or FOB destination. 2.Assume PC Mall sold inventory on account to eCOST.com on December 28, 2008, which was to be delivered January 3, 2009. The inventory cost PC Mall $25,000 and the selling price was $30,000. What amounts, if any, related to this transaction would be reported on PC Mall's balance sheet and income statement in 2008? In 2009? 3.PC Mall placed inventory on consignment with one of its customers. During this period, would the inventory be reported on the balance sheet of PC Mall or its customer? 4.Assume PC Mall purchased electronics on December 29, 2008, which were received on January 2, 2009. Under what terms would these goods be included in PC Mall's inventory on December 31, 2008? C7-1 Comprehensive Financial Statement ExerciseCollege Coasters is a San Antonio based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1, 2009. (See book) 1.Analyze the accounting equation effects of each transaction and any adjustments required at month-end. 2.Prepare journal entries to record each transaction and any adjustments required at month-end. 100 $100 Date Account Debit Credit Assets Liabilities S. Equity Dec 1 Dec 2 Dec 15 Dec 17