Explore BrainMass
Share

Analysis of Inventory Eldermon Sales Company

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

Income statements for Eldermon Sales Company follow. Analyze the inventory position at the end of
each year as well as the profitability of inventory sales in each year. What conclusions would you make
concerning the inventory trend?
2015 2014 2013
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $125,000 $100,000 $75,000
Cost of goods sold:
Beginning inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30,000 $ 25,000 $ 5,000
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,000 80,000 85,000
$135,000 $105,000 $90,000
Ending inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000 30,000 25,000
$ 90,000 $ 75,000 $65,000
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 35,000 $ 25,000 $10,000

© BrainMass Inc. brainmass.com September 23, 2018, 11:33 pm ad1c9bdddf - https://brainmass.com/business/financial-accounting-bookkeeping/analysis-of-inventory-eldermon-sales-company-569647

Solution Summary

The answer is provided in an excel file which shows the calculations - cell references are used. The ratios are followed by a written comment as to the analysis of the trend of inventory

$2.19