Describe the accounting policies that RONA uses to account for its inventory. What does the term net
Question:
Describe the accounting policies that RONA uses to account for its inventory. What does the term “net realizable value” mean? How would RONA know the net realizable value of the inventory in its stores?
RONA Inc. (RONA) is the largest distributor and retailer of hardware, home renovation, and gardening products in Canada. It operates a network of over 680 corporate, franchise, and affiliate stores of various sizes and formats. With over 27,000 RONA employees across Canada, the store network generates over $6.3 billion in annual retail sales. RONA’s mission is to offer the best service and the right product at the right price to North American consumers of housing and home improvement products. RONA is listed on the TSX under the symbol RON.’
RONA’s consolidated balance sheets and statements of earnings and cash flows, along with extracts from the notes to the financial statements and extracts from management’s discussion and analysis, are provided in Exhibit 7.3.
Step by Step Answer:
