Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 13 Oct 2017 My Price 8.00

Firethorn Furniture.

The following calendar year-end information is taken from the December 31, 2011, adjusted trial balance and other records of Firethorn Furniture.

 

Required

1. Prepare the company’s 2011 manufacturing statement.

2. Prepare the company’s 2011 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.

Analysis Component

3. Compute the (a) inventory turnover, defined as cost of goods sold divided by average inventory, and (b) days’ sales in inventory, defined as 365 times ending inventory divided by cost of goods sold, for both its raw materials inventory and its finished goods inventory. (To compute turnover and days’ sales in inventory for raw materials, use raw materials used rather than cost of goods sold.) Discuss some possible reasons for differences between these ratios for the two types of inventories. Round answers to one decimal place.

Answers

Maurice Tutor
(5)
Status NEW Posted 13 Oct 2017 12:10 PM My Price 8.00

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