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Question: The financial statements of P&G are presented in Appendix B. The Company's annual report, including the notes to the financial statements, is available at P&G Annual Reports. Refer to P&s financial statements and the accompanying notes and answer the following questions:
- How does P&G value its inventories? Which inventory costing method does P&G use as a basis for reporting its inventories?
- How does P&G report its inventories on the balance sheet? In the notes to the financial statements, what three descriptions are used to classify its inventories?
- What costs does P&G include in Inventory and Cost of Products Sold?
- What was P&G's inventory turnover in 2017? What is its gross profit percentage? Evaluate P&G's inventory turnover and its gross profit percentage.
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Using the information from the previous two questions, compute the cash conversion cycle
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On March 1, 2017, Headland Company sold goods to Goosen Inc. for $642,000 in exchange for a 5-year, Prepare the journal entries for Headland on December 31
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