Question
Nike, Inc. Category Amount Beginning Inventory $7,000,000 Purchases $22,000,000 Ending Inventory $6,500,000 Net Sales $33,000,000 Operating Expenses $9,000,000 Requirements: Formulate the Cost of Goods Sold
Nike, Inc.
Category | Amount |
Beginning Inventory | $7,000,000 |
Purchases | $22,000,000 |
Ending Inventory | $6,500,000 |
Net Sales | $33,000,000 |
Operating Expenses | $9,000,000 |
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.
- Discuss the effect of Nike's inventory turnover ratio on its supply chain management and product lifecycle.
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292
