SUPERSTORE reported that its inventory turnover decreased from 17.1 times in 2019 to 15.8 times in 2020.
Question:
SUPERSTORE reported that its inventory turnover decreased from 17.1 times in 2019 to 15.8 times in 2020. The following data appear in SUPERSTORE's annual report.
1. Cost of sales and LIFO inventory.
2. Cost of sales and FIFO inventory.
b. Some firms calculate inventory turnover using sales rather than cost of goods sold in the numerator. Calculate SUPERSTORE's 2019 and 2020 turnover using:
1. Sales and LIFO inventory.
2. Sales and FIFO inventory.
c. Describe the method that SUPERSTORE appears to use.
d. State which method you would choose to evaluate SUPERSTORE's performance. Justify your choice.
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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