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Required information [The following information applies to the questions displayed below.] The Slumber Store (TSS) is a national wholesaler of beds, mattresses, pillows, and sheets.
Required information [The following information applies to the questions displayed below.] The Slumber Store (TSS) is a national wholesaler of beds, mattresses, pillows, and sheets. Key totals from TSS's most recent and forecasted financial statements are presented in the table below. From the income statement This Year Next Year Sales Revenue $560,000 $615,000 $770,000 Cost of Goods Sold 346,500 405,250 556,300 Gross Profit 213,500 209,750 213,700 From the balance sheet This Year Next Year Inventories $ 88,000 $101,808 $179,825 Last Year Last Year The Slumber Store (TSS) 0 10 20 30 40 50 Average Days-to-Sell 60 Sheets Sales $80,000 70 Pillows Sales $40,000 80 Beds Sales $200,000 90 100 Mattresses Sales $450,000 110 096 1096 2096 3096 4096 5096 6096 7096 8096 Average Gross Profit Percentage 7. Identify the product line most likely to require a write-down when applying the lower of cost and marketet realizable value rule. Beds O Mattresses Pillows Sheets
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