Purpose: Use SEC filings to learn about a company’s inventory accounting practices.

Address: http://biz.yahoo.com/p/_capgds-bldmch.html, or go to www.wiley.com/college/kimmel

Steps 1. Go to this site and click on the name of an equipment manufacturer other than those discussed in the chapter.
2. Click on SEC filings.
3. Under “Recent filings” choose Form 10K (annual report) and click on Full Filing at Edgar Online.
4. Choose option “3,” Online HTML Version.
If the 10K is not listed among the recent filings then click on View All Filings on EDGAR Online.
Instructions Review the 10K to answer the following questions.

(a) What is the name of the company?

(b) How has its inventory changed from the previous year?

(c) What is the amount of raw materials, work in process, and finished goods inventory?

(d) What inventory method does the company use?

(e) Calculate the inventory turnover ratio and days in inventory for the current year.
(f ) If the company uses LIFO, what was the amount of its LIFO reserve?
Critical Thinking DECISION MAKING ACROSS THE ORGANIZATION