Obsolete Inventory - impact on year end Income Statements

Related BrainMass Solutions

• Audit of Aviary Industries for calendar year 2007

  Net impact on profits and equity: Profits are overstated by $104,551 using the lower estimates for bad debt and obsolete inventory and $139,551 using the high end of the range for these. a.

• Gamble Company uses the LIFO method for inventory costing.

  In an effort to lower net income, company president Oscar Gamble tells the plant accountant to take the unusual step of recommending to the purchasing department a large purchase of inventory at year-end.

• Obsolete inventory, inventory policy footnotes: Cisco 2013

  Address the following questions based on the current year's Annual Report on Cisco's website: 1. At Cisco's fiscal year-end, what was the net inventory on the balance sheet? 2. How has this changed from the previous fiscal year-end? 3.

• Garth Brooks Specialty Company

  The balances of the inventory accounts at the end of Brook's fiscal year, November, 30 2007, are show below. The inventories are stated at cost before any year-end adjustments.

• Inventory section of Brooks' statement of financial position

  Discuss the impact, if any, that this purchase commitment would have on Brooks' financial statements prepared for the fiscal year ended November 30, 2004. --- See the attached file for complete solution.

• Effects of accounting transactions on incoe and taxible resu

  There is evidence that at year-end last year, Fitness Solutions delayed the purchase of inventory until after year-end to keep cost of sales from being too large. The lower costs of sales result in higher net income for the year.

• Financial analysis for Apple, Inc.

  McDonald's inventory turnover is as expected - it turns over its inventories every week which means that on the average, an inventoriable item doesn't stay inventory for more than a week.

• Statement and Note Disclosure, LCM, and Purchase Commitment

  The balances of the inventory accounts at the end of Brooks's fiscal year, November 30, 2007, are shown below. The inventories are stated at cost before any year-end adjustments.

• Accounting: Inventory Cost, Stock Value, and Cost of Goods

  The balances of the inventory accounts at the end of Brook's fiscal year, November 30 2007, are show below. The inventories are stated at cost before any year-end adjustments.