Terry's internal auditor is afraid that some inventory has become obsolete. She has gathered the...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Terry's internal auditor is afraid that some inventory has become obsolete. She has gathered the following information about the inventory items she is worried about:
(Inventory Items) (Historical Cost) (Current Sales Price) (Disposal Cost) (Replacement Value)
TGIT $60 $85 $21 $66
TT9G5 $75 $90 $17 $86
After talking with the Sales department, she estimates that the normal markup on TGIT would be $26 and $36 on TT9G5. They currently have 18,000 units of TGIT and 27,000 units of TT9G5 in stock. Terrys management has opted to use the direct method on any inventory write downs.
Terrys management would like to know the effect of the sale on the following ratios:
Inventory Turnover (COGS / average total inventory) Current Ratio ROA
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.