help pls on #6

6 Look at the notes area. What method does each company use for accounting for inventories? How would it impact the quality of earnings if the company's used different methods to account for inventory? (You can find this information from chapter 13 of the text) Francial Accounting Case (Summer 2021) questions (2012) View Tell me Formulas Data Review m2 AA General $% Cundin Form anges were red. Do you want to continut w where you wo Y? KANINA Merchandise Inventories The substantial majority of our merchandise inventories are stated at the lower of cost first-infos-out) or market as determined by the retail Inventory method, which is based on a number of factors such as markups, markdowns, and inventory losses for shrink). As the inventory retail value is adjusted regularly to reflect market conditions Inventory valued using the retail method approximates the lower of cost or market Independent physical inventory counts or cycle counts are taken on a regular basis in och store and distribution center to ensure that amounts reflected in merchandise wentories we properly stated. Shrink or in the case forces inventory.wal) is the difference between the recorded amount of inventory and the physical inventory. We result of Inventory counts during each focal nod and coomoted inventory lecturing between physical inventory counts. The estimate for Shrink occurring in the interim period between physical inventory councillatod on a store-specific basis based on mentahrink results and current trends in the business Property and Equipment Building, future, futures, and equipment recorded at cost and deprecated in the straighine method over their stimated vs Leshold in promene amorised using the the method over the original terms of the one or the use We of the improvement whichever is shore We capitano, including into corto in progress the ultion and development of Costined with the cousin and development of software are amore in the themed over the de of the software, which is the only random costano moting the ret for capitation are proud We woonhor indicators of primament icons of moment include contendo modo 76 5 2 3 4 6 7 8 9 W E E R T T Y C 1 S D F G . J X C V B N M Financial Accounting Case (Summer 2021) question[2013 View Tell me das Data Review AA Dental Ege Canter $% Con Form Formatting Tables Do we working whe Merchandise Inventory. The majonty of the Company's inventory is stated at the lower of cost and not realizable value using the first in first-out method of inventory accounting Inventory for certain subsidiaries representing approximately 6% and 7% of the consolidated ventory balances as of January 31, 2020 and February 1, 2018 respectively, restted at lower of cost and not realable value using the weighted average cost method. The cost of inventory includes certain costs associated with the preparation of inventory for res, including distribution center costs, and is not of vender finds The Company records an inventory reserve for the anipated loss associated with tolinginventories below.cost. This reserve is based on managements current knowledge with respect to inventory level, trends, and historical experience Management do not believe the Company's merchandise inventories are subject to significant risk of the near form and management as the ability to dus purchasing practicos bared on anticipated sales trends and general economie need for addition roserves. The company records an inventory reserve for the conditions. However, changes in consumer purchasing patterns could not in the sited the between phonventories. This serveis based primary an clustenkuta from previous phyications Changes in the estimated shtoservoare made based on the timing and results of thical inventories Property and Depreciation Property is recorded at cost Cotton maior on are capazed and deprecated, Capital acts are expected to you benefits and have originales which one year The total cost of tapast general codes application cost installation cou and other protected by the company, Induding met in the e of constructed Upon po become of properties and come depreciation is removed from the accounts, wine and chod SOLA X the coming Protycoon, and budget Jos os dias 6 $ 3 5 6 7 8 9 E V R T Y U 1 0 5 D D F G HJ X C V 00 B N M