Calculate the inventory turnover ratio for 2010 using lifo

Assignment Help Finance Basics
Reference no: EM131119214

A large manufacturer of truck and car tires recently changed its cost-flow assumption method for inventories at the beginning of 2010. The manufacturer has been in operation for almost 40 years, and for the last decade, it has reported moderate growth in revenues. The firm changed from the LIFO method to the FIFO method and reported the following information (amounts in millions):

1503_d.jpg

Calculate the inventory turnover ratio for 2010 using the LIFO and FIFO cost-flow assumption methods. Explain why the costs assigned to inventory under LIFO at the end of 2009 and 2010 are so much less than they are underFIFO.  

Reference no: EM131119214

Questions Cloud

Differences between scholarly resources and popular resource : Explain the differences between scholarly resources and popular resources. Describe the key things to remember when searching for sources within the Ashford University Library (e.g., databases, FindIt@AU search tool).
Strategic value of personnel training and development : Part  1: Discuss the strategic value of personnel training and development. What are the implications for the MNC?
Describing the main aspects of personality testing : Write 150 to 200 words describing the main aspects of personality testing. can someone help
What is the nature of an installment sale : What is the nature of an installment sale? How do installment sales differ from ordinary credit sales?
Calculate the inventory turnover ratio for 2010 using lifo : Calculate the inventory turnover ratio for 2010 using the LIFO and FIFO cost-flow assumption methods. Explain why the costs assigned to inventory under LIFO at the end of 2009 and 2010 are so much less than they are underFIFO.
Based on documentation gathered : Based on documentation gathered, your internal audit fraud team has sufficient evidence to prove that a warehouse manager for the company where you work has been stealing inventory. You have been assigned to lead the interview of the manager. How wou..
What is the difference between the obsession and compulsion : What is the difference between the obsession and compulsion in OCD
What is the deposit method and when might it be applied : What is the deposit method and when might it be applied?
Identify and discuss five types of values in education : Identify and discuss five types of values in education. Discuss 4 methods of technical philosophy showing how they can be used to enhance learning and teaching outcomes in education

Reviews

Write a Review

Finance Basics Questions & Answers

  Find current margin position

Suppose you sold 1,000 shares of stock for $21,400. The sale was a short sale with an initial margin requirement of 60%. The maintenance margin is 30%.

  Hat are advantages of the alternative that you have selected

Analyze the alternatives presented and make a recommendation on purchasing the Jaguar. Be sure to provide support for your recommendation - why do you prefer the stated alternative? What are the advantages of the alternative that you have selected..

  What amount should be recorded to the investment

Which of the following categories of investments are reported at their fair values on the balance sheet and have unrealized holding gains and losses included as a separate component of stockholders' equity? Which of the following securities are repor..

  Does the higher coupon bond give a higher rate of return

One bond has a coupon rate of 8% another a coupon rate of 12% both bonds have 10 year maturities and sell at a yield to maturity of 10% if their yields to maturity next year are still 10 % , what is the rate of return on each bond? does the higher co..

  Calculate payoff and profit at expiration for february

Calculate the payoff and profit at expiration for the February 190 calls, if you purchase the option at the stated price and at expiration the stock price is $195 and Calculate the payoff and profit at expiration for the February 195 puts

  The production process consists of three primary activities

klein industries manufactures three types of portable air compressors small medium and large which have unit profits of

  Which one of the following projects should you accept

Which one of the following projects should you accept?

  Dti maximum monthly mortgage loan payment

What is Tom's Front-end DTI maximum monthly mortgage loan payment

  What coupon rate should the griswold co. set on their bonds

24. The Griswold Co. wants to raise $8 million by selling some coupon bonds at par. Comparable bonds in the market have a 6 percent semi-annual coupon, 8 years to maturity, and are selling at 96.9 percent of par. What coupon rate should the Gr..

  Discuss how an indexed bond portfolio is constructed

Describe advantages and disadvantages of bond indexing relative to active bond management - Webb Street manages indexed bond portfolios. Discuss how an indexed bond portfolio is constructed under stratified sampling (cellular) methods.

  Caesar entertaiment corporation

The paper should discuss the following about the Caesar's Entertaiment corporation.

  What is the effect on total shareholders'' equity

What is the effect on total shareholders' equity when a company purchases a cash register for a cash payment of $1,200

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd