Compute helio’s ending inventory and net income for 2011

Assignment Help Finance Basics
Reference no: EM131408453

The 2011 inventory activity for Helio Brothers, a discount retailer that prepares financial statements under IFRS using the FIFO cost flow assumption, is provided below.

734_765464a4-6a7a-4cb4-8cfd-6f281cc1342d.png

Many of the items in the company's inventory at the end of 2011 were judged to be outdated, and on average the market value of the remaining inventory was estimated at $1.50 per item.

REQUIRED:

a. Compute Helio's ending inventory and net income for 2011.

b. Early in 2012 styles appeared to change, and the average market price of the inventory written down at the end of 2011 rebounded to $2.80 per item. Record the entry made by Helio to recognize the inventory recovery. What entry would Helio record if it used U.S. GAAP instead of IFRS?

Reference no: EM131408453

What is the company''s wacc

Sixx AM Manufacturing has a target debt-equity ratio of 0.65. Its cost of equity is 15 percent, and its cost of debt is 10 percent. If the tax rate is 32 percent, what is th

Explain how investing to provide the wacc returns keeps

Calculate the after-tax WACC for a firm with a 25 percent tax rate, a 10 percent cost of debt, a 30 percent cost of equity, and a target debt to value of 0.30. Explain how inv

Provide your final opinion or assessment of your investment

Determine the total value of your investment. Provide your final opinion / assessment of your investments. Did you make money or lose money? Discuss your result

Explain the implications of expanding business strategy

Many people fulfill lifelong goals when they become a member of a certain profession. Perhaps you had a dream of being a business professor or operating your own business fr

Roxio and the resurrection of napster

Under the leadership of Chris Gorog, Napster was riding high as their fiscal year 2007 drew to a close. oGrog's extensive experience in the media and entertainment industry

Calculate the intrinsic value

The Home Appliance Industry had free cash flow to equity of $87 for the year ending December 31, 2007. The industry anticipates a increase rate of 8 percent for the next three

What is the equipment after-tax salvage value

Kennedy can sell the used equipment today for $5.25 million, and its tax rate is 30%. What is the equipment's after-tax salvage value? Round your answer to the nearest cent.

Sinking store tables demonstrate

Sinking store tables demonstrates that Re. 0.296349 contributed every year will create Re.1 toward the end of 3 years at 12% for every annum. The ventures are sold for Rs. 28,

Reviews

Write a Review

 
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