Referring to the data for Anson Industries and Clarence Corporation in Example 14 ,which of the following choices best describes reasonable conclusions an analyst mightmake about the companies’ ROE?A . Anson’s inventory turnover of 76.69 indicates it is more profi table than Clarence.B . Th e main driver of Clarence’s superior ROE in FY5 is its more effi cient use ofassets.C . Th e main drivers of Clarence’s superior ROE in FY5 are its greater use of debtfi nancing and higher net profi t margin

Q: n the following information for the Network Company: Date                                    Cost…

A: The right answer is option C c. Inventory       1,050              Income Summary    1,050

Q: Use the following information relating to Clover Company to calculate (a) the inventory turnover…

A: The ratio is calculated to determine the relationship between 2 numbers. In accounting, Ratios are…

Q: Hubble Space Incorporated has the following data which includes inventory conversion period or ICP…

A: Inventory conversion period is the number of days required to convert raw materials into finished…

Q: When analyzing financial statements, what can you conclude when the inventory turnover ratio…

A: While analyzing the financial statements, we observe that the inventory turnover ratio increases…

Q: Errors were made in each year as follows: in 2020, ending inventory was overstated by $10,600 while…

A: The impact of errors of overstated ending inventory for 2021 profit and owner's equity is shown…

Q: If this were done, by how much would inventories decrease? Ass

A: Information Provided: Inventory = 20,000 COGS = 85,000 ICP (current) = 85.88 Benchmark ICP = 38

Q: What is the comparison (analysis) of the Inventory Turnover Ratio of Industry Average Ratio and the…

A: Inventory turnover ratio defines the time period in which in which inventory is converted into…

Q: Which of the following statements are true? Multiple Cholce none of the statements are true The…

A: The 2 statement is not true, as higher the number of days sales in receivable indicates that the…

Q: Hunter, Inc. uses the LIFO method of inventory costing and is facing the possibility of a LIFO…

A: Concept : It occurs when a company using LIFO inventory valuation method sells more goods old stock…

Q: A company's inventory cost was lower in FIFO than it would have been using LIFO. Assuming no…

A: Inventory is the stock of goods with the company which is ready to sell out. It covers large…

Q: Indicate by a (1), (2), or (0) whether each of the following events wouldprobably cause average…

A: Lessening the inventory since with conveyance through air will impact in the lead time would…

Q: Hubble Space Incorporated has the following data which includes inventory conversion period or ICP…

A: Inventory refers to the goods or items which are stored by the business either for selling or for…

Q: Below is selected financial information for Swingline Inc. 2020 2019 2018 2017 Ending Inventory Cost…

A: The question is based on the concept of ratios analysis. As per the Bartleby guidelines we are…

Q: An analyst observes a decrease in a company’s inventory turnover. Which of the following would most…

A: The inventory turnover shows the capability of the firm’s selling and replacing of an inventory…

Q: In 2020, Frost Company, which began operations in 2018, decided to change from LIFO to FIFO because…

A: Net Income:- The income statement reports the result of the operational performance of a firm i.e.…

Q: 1.Given a particular set of factsand assumptions, the following pairs of amounts were computed using…

A: LIFO = Last in, First out FIFO = First in, First out A) $20,650 =FIFO$19,400 = LIFO B) $10,650 =…

Q: Allied Products maintains a large inventory. The company has used the LIFO inventory method for many…

A: Allied products maintain a large inventory and use the LIFO inventory method for inventory…

Q: In 2020, Frost Company, which began operations in 2018, decided to change from LIFO to FIFO because…

A: Under LIFO, the organization used to assume that the goods it is selling would be from the latest…

Q: Project the average inventory balance in Year X and use it to compute the implied ending inventory…

A: The term sales revenue represents gross earnings generated by selling goods and services in the…

Q: Zimt AG wrote down the value of its inventory in 2007 and reversed the write-downin 2008. Compared…

A: The correct option is Option C. Inventory turnover was too high.

Q: Astro Company changed its inventory cost flow assumption from FIFO to LIFO in a period of rising…

A: 1. If a company uses the FIFO method and the prices are rising over a period then it means the Cost…

Q: Assume that a firm separately determined inventory under FIFO and LIFO and then compared the…

A: FIFO is a method of costing inventory in which the inventory purchased first is out first for…

Q: For each of the independent case, indicate the effect of the error, if any, on the accounts and the…

A: Inventory means the stock of goods in which the businessmen deals. Merchandise on hand means the…

Q: a. Based on Table 1, compute the company's supply chain performance in terms of inventory turnover…

A: The answer is stated below:

Q: the ending inventory of a firm is overstated by $49,000, by how much and in what direction…

A: Solution Concept Mathematically Cost of goods sold       =beginning inventory + purchase – ending…

Q: he XYZ Company completed the following perpetual inventory transactions: May 1Beginning inventory20…

A: LIFO method under perpetual inventory method : In this method, the costs of last purchased items are…

Q: Indicate by a (1), (2), or (0) whether each of the following events wouldprobably cause average…

A: Average annual inventory holding is a relationship between average inventory and cost of goods sold…

Q: A firm utilizes a periodic inventory cost system with a Last-In, First-Out (LIFO) cost flow…

A: LIFO Method: Last in, first-out (LIFO) is a system of accounting for inventory sales in which the…

Q: Company A uses the FIFO method to cost inventory and Company B uses the LIFO method. Thetwo…

A: Inventory:   Inventory refers to the raw materials, work-in process, and the finished goods…

Q: In 2020, Frost Company, which began operations in 2018, decided to change from LIFO to FIFO because…

A: Computation of impact on Profit Cumulative impact on inventory on 12/31/2018 = $34,800 Tax on…

Q: Which of the following is false? Select one: a. Days’ sales in inventory is equal to the average…

A: Option “B” is False.

Q: Accountants at UltraTech obtain their values for inventory and total assets, calculate the balance…

A: Inventory to assets ratio is a financial ratio used for the analysis of financials of the company.…

Q: 1. If the inventory account at the end of the year is understated, the effect will be to…

A: SOLUTION- IF ENDING INVENTORY IS UNDERSTATED , THE COST OF GOOD SOLD FOR THAT YEAR (2018) WILL BE…

Q: Assume that Audio Outfitter Inc. in Discussion Question 9 experienced an abnormal inventory…

A: Adjustment entry for abnormal inventory shrinkage:

Q: Given the following data for AI-Madar co. for 2021: Inventory at Cost (31/12/2021) Inventory at NRV…

A: Cost of goods sold = sales - Gross profit

Q: Management of Tarry Company takes the position that under the lower-of-cost-or-market rule, the two…

A: In the lower of cost or market (LCM) inventory valuation method, the inventory of the company…

Q: Swing Ltd uses FIFO for its inventory, which is valued at $21,000. It is considering a change to…

A: Inventory is either sold or kept as ending inventory. Sold inventory involves the Cost of goods…

Q: The December 31,2016 inventory of Gwynn Company consisted of three products, for which certain…

A: Introduction Net Realizable Value is the cash that compnay expects to receive at the end. As far as…

Q: Assume that the ending inventory of a merchandising firm is overstated by $40,000. a. By how much…

A: The cost of goods sold formula is calculated by adding purchases for the period to the beginning…

Q: a. What is the inventory turnover?

A: Inventory Turnover is otherwise  called as stock turnover ratio. It is a measure which indicates…

Q: In 2020, Frost Company, which began operations in 2018, decided to change from LIFO to FIFO because…

A: Journal entry is a primary entry that records the financial transactions initially.

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.