Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose the following information is from the 2022 annual report of American Greetings Corporation (all dollars in thousands). Feb. 28, 2022 Feb. 28, 2021 Inventories

image text in transcribed

image text in transcribed

Suppose the following information is from the 2022 annual report of American Greetings Corporation (all dollars in thousands). Feb. 28, 2022 Feb. 28, 2021 Inventories Finished goods $ 202,400 $ 211,200 Work in process 5,900 8,600 Raw materials and supplies 43,000 37,100 251,300 256,900 Less: LIFO reserve 73,900 70,400 Total (as reported) $177,400 $ 186,500 Cost of goods sold $ 696,600 $ 670,800 Current assets (as reported) $ 482,400 $ 576,200 Current liabilities $ 292,400 $369,800 The notes to the company's financial statements also include the following information. The last-in, first-out (LIFO) cost method is used for approximately 75% of the domestic inventories in 2022 and approximately 70% in 2021. The foreign subsidiaries principally use the first-in, first-out (FIFO) method. Display material and factory supplies are carried at average-cost. Calculate the company's inventory turnover and days in inventory for 2021 and 2022 using the "Total (as reported)" amounts. (The 2020 inventory was $ 163,600.) (Round answers to 1 decimal place, e.g. 15.2.) 2022 2021 Inventory Turnover times times Days in Inventory days days

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel,  Jerry J. Weygandt,  Jill E. Mitchell

10th Edition

1119791081, 978-1119791089

More Books

Students also viewed these Accounting questions