Federal Way, Incorporated, is a major department store chain. The dominant portion of the company's business consists of providingmerchandise and services to consumers through department stores and online. In a prior annual report, Federal Way reported cost ofgoods sold of $11,572 million, ending inventory for the current year of $3,260 million, and ending inventory for the previous year of$3,638 million.Required:Develop a reasonable estimate of the merchandise purchases for the year.Note: Enter your answers in millions.Purchasesmillionmillionmillionmillion

We have two options to find the missing purchases: Option 1: Use the T-account. The balancing figure…

Answered: Federal Way, Incorporated, is a major…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 7CP

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Dillard’s, Inc. , operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2013 third-quarter report, the company reported Cost of Goods Sold of $1.0 billion,ending inventory for the third quarter of $1.8 billion, and ending inventory for the previous quarterof $1.5 billion. Determine the amount of merchandise purchases for the third quarter.
Collins corporation, operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2019 second-quarter report, the company reported Cost of Goods Sold of $7,900 million, ending inventory for the second quarter of $9,100 million, and ending inventory for the previous quarter of $9,100 million. Determine the amount of merchandise purchases for the second quarter. (Enter your answer in millions.) Merchandise Purchases million
Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retail Inventory method to estimate ending inventory and cost of goods sold. The following data are available: Cost Beginning inventory. $ 190,000 Net purchases 660,000 Net markups Net markdowns Net sales Required: Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold using the information provided. Assume stable retail prices during the period. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign. Beginning inventory Net purchases Net markups Net markdowns Retail $ 290,000 865,000 20,000 5,000 836,000 Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Cost-to-retail percentage (beginning) Cost-to-retail percentage (current) Net sales Estimated ending inventory at retail…
The cost of goods sold was computed at P12,250. Total sales for the year were P42,950, of which P31,200 in credit. Lawson’s inventory turnover ratio for the year was Mr. Plengpong, the controller, had gathered the following accounting data regarding Lawson Inc.
The general merchandise retail industry has a number of segments represented by the following companies: For a recent year, the following cost of goods sold and beginning and ending inventories arc provided from corporate annual reports (in millions) for these three companies: a. Determine the inventory turnover ratio for all three companies. Round all calculations to one decimal place.b. Determine the number of days' sales in inventory for all three companies. Use 365 days and round all calculations to one decimal place. c.Interpret these results based on each company's merchandising concept.
Sarasota Limited reported the following selected data for the year ended December 31, 2024: purchases $245,700; purchase returns and allowances $8.270; purchase discounts $25,750; freight in $6,500; freight out $14,290; beginning inventory $132.300; and ending inventory $151,200. Prepare the cost of goods sold section for Sarasota in a multiple-step statement of income. Cost of goods sold
Sellall Department Stores reported the following amounts as of its December 31 year- end: Administrative Expenses, $1,800; Cost of Goods Sold, $19,440; Income Tax Expense, $2,790; Interest Expense, $1,400; Interest Revenue, $160; General Expenses, $2,000; Net Sales, $32,580; and Delivery (freight-out) Expense, $240. Prepare a multistep income statement for distribution to external financial statement users. SELLALL DEPARTMENT STORES Income Statement
Harvest, Inc., a retail company, reported inventories of $1,020,240 at the beginning of the year, and $1,050,480 at the end of the year. The annual income statement reported cost of goods sold of $8,760,240. a. Compute the amount of inventory purchased during the year. $ a. Prepare journal entries to record (1) inventory purchases and (2) cost of goods sold. Assume all purchases were made on account. Ref. (1) (2) Account To record purchases. To record cost of goods sold. Debit Credit
Inigo Stores operates general merchandise stores that feature quality merchandise at low prices to meet the needs of middle-, low-, and fixed-income families in southern, eastern, and midwestern states. For the year ended February 1, 2019, the company reported average inventory of $2,478 (in millions) and an inventory turnover of 4.92. Average total fixed assets were $2,077 (million) and the fixed asset turnover ratio was 8.44. 1. Calculate Inigo Stores’s net sales and cost of goods sold. 2. Compute the gross profit percentage. 3. Is this an improvement from the gross profit percentage of 31.0 percent earned during the previous year?
1. Consider the following data determined from the financial statements of a major retailer: Inventory turnover = 75 days Days' sales outstanding = 30 Days' purchases outstanding = 50 Which of the following statements is correct? A.All of these statements are correct. B.On average, the company pays its suppliers 55 days before it collects cash from its customers. C.On average, the company sells the inventory 45 days before it collects cash from its customers. D.On average, the company collects cash from its customers 20 days before it pays its suppliers. E.On average, the company purchases its inventory 25 days before it sells it. 2. Which of the following would explain why Payments to suppliers and employees for the period is greater than Total operating expenses for the period? A.Significant impairments of non-current assets during the period. B.Significant levels of prepaid expenses at the end of the period. C.Significant levels of trade payables at the end of the period.…
LaRoe Lawns’ inventory increased during the year by $5.9 million. Its accounts payable increased by $4.8 million during the same period.Required: What is the amount of cash LaRoe paid to suppliers of merchandise during the reporting period if its cost of goods sold was $56 million? Prepare a summary entry that represents the net effect of merchandise purchases during the reporting period. Record the net effect of merchandise purchases.
Jake Thomas Corporation uses the conventional retail method for financial reporting. The company's inventory records are summarized below. Description Cost Retail Beginning inventory $31,800 $53,000 Purchases 127,540 197,900 Additional markups 9,600 Markup cancellations 3,500 Markdowns 5,100 Markdown cancellations 4,000 Sales 230,000 Complete the partial table below to determine the cost-to-retail ratio. In the following step, complete the table by selecting the labels and entering the amounts needed to estimate Jake Thomas' ending inventory using the conventional retail method. (If an input field is not used in the table, leave the input field empty; do not enter a zero. Round the cost-to-retail ratio to two decimal places, X.XX%. Round all currency amounts to the nearest whole dollar.) Cost-to-Retail Description Cost Retail Ratio…

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