Reference no: EM131555010

Assignment: Financial Statement Analysis

The questions are based on to the attached statement.

QUESTION 1

Assuming increasing prices, the inventory cost flow assumption used by the company results in:

lower net income on the income statement than the other inventory cost flow assumptions.
Higher net income on the income statement than the other inventory cost flow assumptions.

QUESTION 2
Cost of goods sold for the most recent reporting period was:

$4.038,000.000
$3.814.000.000
$12,265.000.000
$12,098,000,000

QUESTION 3
The company s cost of goods available for sale during the most recent year-end was $16.303,000.000.

True
False

QUESTION 4
The ending inventories balance at the most recent balance sheet date was:

$4,038.000.000
$3.814.000.000
$12,265.000,000
$12,098,000,000

QUESTION 5
Cost of goods purchased during the most recent year-end was 516,303.000,000.

True
False

QUESTION 6
Assuming increasing prices. the inventory cost flow assumption used by the company to value inventory:

results in higher total assets on the balance sheet than the other inventory cost flow assumptions.
results in lower total assets on the balance sheet than the other inventory cost flow assumptions.

QUESTION 7
The company s inventories are stated at the lower of cost or market.

True
False

QUESTION 8
Which of the following inventory cost flow assumptions does the company use to value its inventory?

Weighted average cost
LIFO
FIFO
Specific identification

QUESTION 9
Use the following formula to calculate the company s inventory turnover ratio over the last two balance sheet dates. Inventory turnover ratio = cost of sales / inventory. Round to two decimal places. Now answer the question below. The company sold inventory:

quicker in the most recent reporting period than the past reporting period.
slower in the most recent reporting period than the past reporting period.
at the same rate in the most recent reporting period compared to the past reporting period.

QUESTION 10
Calculate the company's gross profit ratio over the last two reporting periods. Round to 2 decimal places. Now answer the question: Did more of the company s operating revenues become gross profit in the current period compared to the prior period?
Yes
No

Attachment:- 2016-10-K-as-Filed-With-Exhibits.pdf