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You project that Sales in 2021 will increase at the average rate as in year 2018- 2020. You also use the same COGS ratio as
You project that Sales in 2021 will increase at the average rate as in year 2018- 2020. You also use the same COGS ratio as in 2020. using COGS to Average Inventory ratio for the last year you:
Sales COGS GrossProfit SG&A EBIT NI EOP AP Inventory 2018 570,00 205,20 364,80 247,00 117,80 70,68 45,00 32,00 2019 612,18 244,91 367,27 294,50 72,77 43,70 50,00 37,00 2020 604,80 260,00 344,80 272,00 72,80 43,68 52,00 39,00
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To calculate the estimated ending inventory for 2021 we will use the COGS to Average Inventory ratio ...
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Financial Reporting Financial Statement Analysis and Valuation
Authors: Clyde P. Stickney
6th edition
324302959, 978-0324302967, 324302967, 978-0324302950
