Question
Ford Motor Company Category Amount Beginning Inventory $9,200,000 Purchases $26,000,000 Ending Inventory $8,700,000 Net Sales $40,000,000 Operating Expenses $12,000,000 Requirements: Formulate the Cost of Goods
Ford Motor Company
Category | Amount |
Beginning Inventory | $9,200,000 |
Purchases | $26,000,000 |
Ending Inventory | $8,700,000 |
Net Sales | $40,000,000 |
Operating Expenses | $12,000,000 |
Requirements:
- Formulate the Cost of Goods Sold (COGS) statement.
- Compute the Gross Profit.
- Calculate the Inventory Turnover Ratio.
- Draft a partial Income Statement showing Net Sales, COGS, and Gross Profit.
- Evaluate how Ford's inventory turnover ratio affects its production scheduling and market competitiveness.
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Intermediate Accounting
Authors: Earl K. Stice, James D. Stice
19th edition
1133957919, 978-1285632988, 1285632982, 978-0357691229, 978-1133957911
