Question
1) Examine the inventory account/COGS as well as related notes. How about the accounting policy/method? What conclusions can you draw about the gross profit of
1) Examine the inventory account/COGS as well as related notes. How about the accounting policy/method? What conclusions can you draw about the gross profit of the company and its inventory management?
Gross profit(unit : million)-> 2015 3,666,042
2015 | 2014 | Average | |
Inventory | 23,385 | 27,111 | 25,248 |
COGS | 165,404 | 195,739 | |
Inventory Turnover (COGS / Ave Inventory) | 707% | ||
Inventory holding period | 51.62 |
|
2) Examine the PP&E/ Accumulated Depreciation and Depreciation Expense accounts as well as related notes. What can you learn about the depreciation method and assumptions? What conclusions can you draw about the companys management of fixed assets?
the amount is as follows, what should I consider and write down..?
PP&E | Accumulated Depreciation | Depreciation Expense account | |
2015 | 8,867,209 | 8,339,807 | 1,215,598 |
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