For this exercise, your client, Bright IDEAs Inc., has provided you with a listing of inventory on hand as of the end of the year. You have been assigned the task of performing procedures to identify unusual or potentially obsolete inventory items and propose a valuation allowance.

Required Data Files:

Inventory_2015.asc

IDEA Data Analysis Workbook

Required:

Complete all of the related steps shown above using IDEA. After completing each step, answer the following questions. (Enter your answers exactly as they appear in IDEA.)

a. Import the clients database of inventory and reconcile it to the general ledger (pp. 187200 of the IDEA Workbook). Upon importing the Inventory2015.asc DB, what is the Number of Records shown by IDEA?

b. Use data extraction techniques to identify client-identified obsolete inventory items in the clients inventory listing or items showing negative amounts or quantities (pp. 201204 of the IDEA Workbook). What is the total dollar amount of items identified by the client as obsolete? How many inventory items have negative balances?

c. Calculate inventory usage ratios to identify inventory items not flagged by the client that may nonetheless be obsolete. (pp. 204211 of the IDEA Workbook). How many product lines have more than 3 years of usage in stock?

d. Use your calculations from the above steps to estimate a provision for obsolete inventory. (pp. 212216 of the IDEA Workbook). Determine which of the given accounts and assertions would most likely be influenced by the results of your testing of the inventory provision?

e. Determine which of the given statements is the most reasonable conclusion regarding the inventory provision.

Complete this question by entering your answers in the tabs below. Reqs A to C Required D Required E a. Import the client's database of inventory and reconcile it to the general ledger (pp. 187-200 of the IDEA Workbook). Upon importing the Inventory2015.asc DB, what is the Number of Records shown by IDEA? b. Use data extraction techniques to identify client-identified obsolete inventory items in the client's inventory listing or items showing negative amounts or quantities (pp. 201-204 of the IDEA Workbook). What is the total dollar amount of items identified by the client as obsolete? How many inventory items have negative balances? (Round your answer for "Total dollar amount of items identified by the client as obsolete" to the nearest whole dollar.) c. Calculate inventory usage ratios to identify inventory items not flagged by the client that may nonetheless be obsolete. (pp 204-211 of the IDEA Workbook). How many product lines have more than 3 years of usage in stock? Show less a. Number of records shown by IDEA b. Total dollar amount of items identified by the client as obsolete Number of inventory items with a negative balance c. Number of product lines with more than 3 years of usage in stock Regs A to C Required D> Complete this question by entering your answers in the tabs below. Reqs A to C Required D Required E a. Import the client's database of inventory and reconcile it to the general ledger (pp. 187-200 of the IDEA Workbook). Upon importing the Inventory2015.asc DB, what is the Number of Records shown by IDEA? b. Use data extraction techniques to identify client-identified obsolete inventory items in the client's inventory listing or items showing negative amounts or quantities (pp. 201-204 of the IDEA Workbook). What is the total dollar amount of items identified by the client as obsolete? How many inventory items have negative balances? (Round your answer for "Total dollar amount of items identified by the client as obsolete" to the nearest whole dollar.) c. Calculate inventory usage ratios to identify inventory items not flagged by the client that may nonetheless be obsolete. (pp 204-211 of the IDEA Workbook). How many product lines have more than 3 years of usage in stock? Show less a. Number of records shown by IDEA b. Total dollar amount of items identified by the client as obsolete Number of inventory items with a negative balance c. Number of product lines with more than 3 years of usage in stock Regs A to C Required D>