Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the information on the next page, what inventory costing method does CarMax use? Do you believe this method is appropriate? Explain. The asset

image text in transcribedBased on the information on the next page, what inventory costing method does CarMax use? Do you believe this method is appropriate? Explain.

The asset side of the 2017 balance sheet for CarMax Inc. is below. Consolidated Balance Sheets - Feb. 28, 2017 Feb. 29, 2016 USD $ in Thousands (excerpts) CURRENT ASSETS: Cash and cash equivalents 38,416 $ 37,394 Restricted cash from collections on auto loan receivables 380,353 343,829 Accounts receivable, net 152,388 132,171 Inventory 2,260,563 1,932,029 Other current assets 41,910 26,358 TOTAL CURRENT ASSETS 2,873,630 2,471,781 Auto loan receivables, net 10,596,076 9,536,892 Property and equipment, net 2,518,393 2,161,698 Deferred income taxes 150,962 161,862 Other assets 140,295 127,678 TOTAL ASSETS $16,279,356 $14,459,911 The asset side of the 2017 balance sheet for CarMax Inc. is below. Consolidated Balance Sheets - Feb. 28, 2017 Feb. 29, 2016 USD $ in Thousands (excerpts) CURRENT ASSETS: Cash and cash equivalents 38,416 $ 37,394 Restricted cash from collections on auto loan receivables 380,353 343,829 Accounts receivable, net 152,388 132,171 Inventory 2,260,563 1,932,029 Other current assets 41,910 26,358 TOTAL CURRENT ASSETS 2,873,630 2,471,781 Auto loan receivables, net 10,596,076 9,536,892 Property and equipment, net 2,518,393 2,161,698 Deferred income taxes 150,962 161,862 Other assets 140,295 127,678 TOTAL ASSETS $16,279,356 $14,459,911

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using Microsoft Excel And Access 20 For Accounting

Authors: Glenn Owen

5th Edition

133751229X, 9781337512299

More Books

Students also viewed these Accounting questions

Question

=+6. Whether they'd talk to others about the ad.

Answered: 1 week ago