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Task 2: Perform inventory valuations using LIFO, FIFO, and weighted average methods based on the following information. Explain the impact of each method on the cost of goods sold and ending inventory.
The company imports microwaves from a supplier in China for the US market. At the end of the first quarter, 100 microwaves are in stock. The company purchased a total of 400 microwaves during the quarter at various prices:
January: 100 units @ $75
February: 250 units @ $83
March: 50 units @ $87
The company had no inventory at the beginning of the quarter.
Task 3: If the company’s goal is to maximize net income, which evaluation method will you use and why?
Use the ITT Tech Virtual Library to support your answer with facts.
Submission Requirements:
Click here to download the Task 1 template for calculation. (I attached the file c)
Click here to download the Task 2 template for calculation. (file D)
Title: Calculating and Analyzing Ratios
Based on the financial information provided, calculate the following ratios and explain their purpose:
Current Ratio
Inventory Turnover Ratio
Accounts Receivable Turnover Ratio
Debt to Equity Ratio
Return on Assets Ratio
Asset Turnover Ratio
Return on Equity Ratio
Profit Margin Ratio
Price-Earnings Ratio
Dividend Yield Ratio
Click here to download the financial statements. (File E)
Note: When a balance sheet amount is related to an income statement amount in computing a ratio, the balance sheet amount should be an average of that
period. The average is calculated by adding the ending balances of this year and last year and dividing the result by 2.
Describe how a bank lending officer might use ratio analysis. Select five ratios that would be most useful for the purpose and explain the rationale for your selection.
Submission Requirements: Submit your answers in a Microsoft (MS) Word file.
Font: Arial, 12 point, double-spaced
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OnlineStudent1
project_description.docx
