accounting 1 home work

FSA 2: Prepare a one-page analysis of your company’s merchandising activities. Answer the following questions:

1) How much inventory did your company carry this year and last year?

2) What was cost of goods sold for this year and last year?

3) Determine the gross margin/gross profit percentage (gross margin) for your company and its competitors for the last two years.

4) Does your company use LIFO, FIFO or Average for its financial statements (you will

need to explore the company’s footnotes)?

5) Where did you look (specific note) to find the answer to #4 above?

6) What was your company’s inventory turnover? Make the calculation for its competitor and show your work? How does your company compare to competitor (better/worse/similar)?

7) What does company management have planned for inventory? Will it grow, shrink or will

the company change the mix of products/retail outlets available? Are there new concepts on the horizon? Will the company shed operations? Your answer should be a paragraph written in your own words. A great place to look for this is in the Management’s Discussion and Analysis (MD&A) section of the 10K Annual Report.