Refer to the note related to inventories in the CVS annual report in the Supplement to Chapter
Question:
Refer to the note related to inventories in the CVS annual report in the Supplement to Chapter 16 to answer the following questions: What inventory method(s) does CVS use? Do you think many of the company’s inventories are valued at market? Why or why not? Few companies use the retail method, so why do you think CVS uses it? Compute and compare the inventory turnover and days’ inventory on hand for CVS for 2011 and 2010. Ending inventories in 2009 were $10,343 million. (Round to one decimal place.)
Step by Step Answer:
CVS uses the lowerofFIFOcostormarket rule as determined by the retail inventory method It is unlikel...View the full answer
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Managerial Accounting questions
-
In the CVS annual report in the Supplement to Chapter 1, refer to the balance sheet and the Summary of Significant Accounting Policies in the notes to the financial statements. 1. Examine the...
-
Refer to the note related to inventories in CVS Corporations annual report in the Supplement to Chapter 5 to answer the following questions: What inventory method(s) does CVS use? If LIFO inventories...
-
In the CVS annual report in the Supplement to Chapter 1, refer to the balance sheet and the Summary of Significant Accounting Policies in the notes to the financial statements. 1. Examine the...
-
. The electric polarization P of a light wave for high values of the electric field E is given by: P= a(c,E+cE + cE) where a, c1, c2 and c3 are constants. Find the expression for the instantaneous...
-
The analysis of variance F-test in Exercise 11.17 (and data set EX1117) determined that there was indeed a difference in the average cost of lumber for the four states. The following information from...
-
A designer clothing firm makes ladies scarves and blouses using a blend of wool and silk fibres. The quantity of fibre (in grams) required for a scarf and a blouse, and the profit (in $s) made from...
-
5. Long-lived assets are purchased by a nongovernmental not-for-profit entity with cash that was restricted for that purpose. The assets are reported in temporarily restricted net assets....
-
Repeat Example 5.3 for N = 1, 3, 10, and 30 stages. Plot the percent absorption of each of the five hydrocarbons and the total feed gas, as well as the percent stripping of the oil versus the number...
-
You have an opportunity to purchase rental real estate. Your required return on your investment is 15 % because of anticipated rehab costs. The initial investment in the property is $350,000. You...
-
The shelf life of a carbonated beverage is of interest. Ten bottles are randomly selected and tested, and the following results are obtained: Days 108 138 124 163 124 159 106 134 115 139 (a) We would...
-
ExxonMobil Corporation had net income of $41.0 billion in 2011. Inventories under the LIFO method used by the company were $11.7 billion in 2011. Inventory would have been $25.6 billion higher if the...
-
Refer to CVSs annual report in the Supplement to Chapter 16 and to the following data (in millions) for Walgreens: cost of goods sold, $51,692 and $48,444 for 2011 and 2010, respectively;...
-
The Snyder Mfg. Co., being a large user of coal, entered into separate contracts with several coal companies. In each contract, it was agreed that the coal company would supply coal during the year...
-
Lennys Limousine Service (LLS) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Required: Help LLS evaluate this project by calculating...
-
Lancer Corp. has the following information available about a potential capital investment Required: 1. Calculate the projects net present value. 2. Without making any calculations, determine whether...
-
Woodchuck Corp. is considering the possibility of outsourcing the production of upholstered chair pads included with some of its wooden chairs. The company has received a bid from Padalong Co. to...
-
Woodchuck Corp. is considering eliminating a product from its line of outdoor tables. Two products, the Oak-A and Fiesta tables, have impressive sales. However, sales for the Studio model have been...
-
Suppose that Flyaway Company also produces the Windy model fan, which currently has a net loss of \($40,000\) as follows: Eliminating the Windy product line would eliminate \($20,000\) of direct...
-
Awritten promise to repay a definite sum of money on demand or at a fixed or determinable date in the future. True/False
-
Three forces with magnitudes of 70pounds, 40 pounds, and 60 pounds act on an object at angles of 30, 45, and 135, respectively, with the positive x-axis. Find the direction and magnitude of the...
-
Make a table with three columns: device (examples: Mac computer, Windows, Apple Watch, Android Phone, etc.), feature (photo access, camera and mic access, data tracking, location tracking, etc.), and...
-
URL Services has two divisions: Basic Web Pages and Custom Web Pages. Ricky Vega, manager of Custom Web Pages, wants to find out why Custom Web Pages is not profitable. He has prepared the reports...
-
EZ, Inc., manufactures two products that require both machine processing and labor operations. Although there is unlimited demand for both products, EZ could devote all its capacities to a single...
-
Grady Enterprises manufactures three computer games. They are called Rising Star, Ghost Master, and Road Warrior. The product line data are as follows: The current production capacity is 110,000...
-
Discuss American History
-
Your firm has developed a new lithium ion battery polymer that could enhance the performance of lithion ion batteries. These batteries have applications in many markets including cellphones, laptops,...
-
Need help analyzing statistical data 1. ANOVA) True or false: If we assume a 95% confidence level, there is a significant difference in performance generally across all groups. 2. (t-test) True or...
Study smarter with the SolutionInn App