User Account

All Pages

Why were inventories recorded at market value

Assignment Help Financial Accounting
Reference no: EM13900078

Saks Incorporated disclosed the following note regarding its merchandise inventories for its January 31, 2004, financial statements:

Merchandise Inventories and Cost of Sales Merchandise inventories are valued by the retail method and are stated at the lower of cost (last- in, first-out "LIFO"), or market and include freight, buying and distribution costs. The Company takes markdowns related to slow moving inventory, ensuring the appropriate inventory valua- tion. At January 31, 2004 and February 1, 2003, the LIFO value of inventories exceeded market value and, as a result, inventory was stated at the lower market amount.

Consignment merchandise on hand of $127,861 and $112,435 at January 31, 2004 and February 1, 2003, respectively, is not reflected in the consolidated balance sheets.

a. Why were inventories recorded at market value?

b. What are consignment inventories, and why were they excluded from the balance sheet valuation?

Reference no: EM13900078

Questions Cloud

Calculate the ex-dividend price : Stock Splits and Stock Dividends: Billings Corporation (BC) currently has 365,000 shares of stock outstanding that sell for $72 per share. What will the share price be after - Calculate the ex-dividend price.
The following selected information is from ellerby company : 1.The following selected information is from Ellerby Company's comparative balance sheets.
Synapse has already developed ltp : If a synapse has already developed LTP once, should it be easier or more difficult to get it to develop LTP again? Why?
What type of industry benefits the most from technological : What type of industry benefits the most from technological innovation?
Why were inventories recorded at market value : Why were inventories recorded at market value? What are consignment inventories, and why were they excluded from the balance sheet valuation?
Examine the rates of growth in the service categories : Examine the rates of growth in the service categories
The study of environmental science : Discussion Topic 1: The Study of Environmental Science Why is the study of environmental science important to your everyday life?
Determine the inventory turnover and number of days sales : Determine the inventory turnover and number of days sales in inventory for Neiman Marcus and Amazon.com. Interpret your results.
Recognize and explain how the scientific method : Recognize and explain how the scientific method is used to solve problems make observations and discriminate between scientific and pseudoscientific explanations weigh evidence and make decisions based on strengths and limitations of scientific knowl..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find which of depreciation method applied in part a

find which of depreciation method applied in part a resulted in the lowest reported book value at the end of 2014? is

  Multiple-step income statement format

Rank the three companies (highest to lowest) based on the gross margin ratio and which of the companies uses a multiple-step income statement format?

  How mcdonald react from a corporate disclosure perspective

Top management at radio 2UE ordered the station's broadcaster not to make derogatory comments about McDonald's on air or the station would lose its $170,000 advertising account with the fast-food chain, according to a leaked in internal memo.

  Calculation of difference between firms market value and

calculation of difference between firms market value and book value per share.superior medical systems 2005 balance

  Prepare the stockholders equity section of the kcas-tv

Prepare the stockholders' equity section of the KCAS-TV balance sheet at September 30, 2012.

  Cost leadership strategy-quick-response strategy

Of the potential strategies available to Regal Marine, have they chosen differentiation, cost leadership, or quick response? Do you think that is a good choice for a boat manufacturer? Why or why not?

  Components of stockholders equity

Identify the major components of stockholders equity by examining the Statement of Stockholders Equity.  What types of accounts and transaction resulted in major changes in the Stockholder Equity accounts during the most recent year?

  What is the hotels average daily rate

What is the hotel's average daily rate, if the property's percentage of rooms revenueto total revenue is 62.9% and occupancy percentage is 67.8%?

  What is the present value of the liability

Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $390,000 due in 27 years. In other words, they will need $390,000 in 27 years. Toni Flanders, the company's CEO, is scrambling to discount the liabil..

  The venture to break even during its first year of operation

Determine how many new clients must visit the law office being considered by Terry Smith and his colleagues in order for the venture to break even during its first year of operations.

  List out the parties who you believe are most responsible

List out the parties who you believe are most responsible for that crisis. Briefly justify each of your choices.

  Explain the results in terms of time value of money

First, consider Lisa’s savings. She began working at age 20 and began making an annual contribution of $2,000 at the first of the year beginning with her first year. Create a chart summarizing the details of the investment for both Bob and Lisa. Expl..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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