The inventories (in millions) of Anheuser Busch Companies, Inc , were recently reported on its December 31, 2004 and 2003, balance sheets as follows The cost of goods sold reported on the income statement was $8,983 million a What do the three inventory classes on Anheuser Buschs balance sheet repr...

a The raw materials represent the materials held in inventory prior to production These inventories ...

The inventories (in millions) of Anheuser-Busch Companies, Inc., were recently reported on its December 31, 2004 and

Question:

The inventories (in millions) of Anheuser-Busch Companies, Inc., were recently reported on its December 31, 2004 and 2003, balance sheets as follows:

Dec. 31, 2004 $405.0 Dec. 31, 2003 $320.3 Raw materials Work-in-process Finished goods Total 80.0 81.9 185.3 205.3 $690.

The cost of goods sold reported on the income statement was $8,983 million.

a. What do the three inventory classes on Anheuser-Busch’s balance sheet represent?

b. Calculate the number of days’ sales in inventory for raw materials and finished goods and for the total inventory. Round to one decimal place.

c. Interpret your calculations in (b).

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...