问题如下:
1. Crux’s inventory turnover ratio computed as of 31 December 2009, after the adjustments suggested by Groff, is closest to:
选项:
A.5.67.
B.5.83.
C.6.13.
解释:
B is correct.
Crux’s adjusted inventory turnover ratio must be computed using cost of goods sold (COGS) under FIFO and excluding charges for increases in valuation allowances.
COGS (adjusted) = COGS (LIFO method) – Charges included in cost of goods sold for inventory write-downs – Change in LIFO reserve = $3,120 million – 13 million – (55 million – 72 million) = $3,124 million
Note: Minus the change in LIFO reserve is equivalent to plus the decrease in LIFO reserve. The adjusted inventory turnover ratio is computed using average inventory under FIFO.
Ending inventory (FIFO) = Ending inventory (LIFO) + LIFO reserve
Ending inventory 2009 (FIFO) = $480 + 55 = $535
Ending inventory 2008 (FIFO) = $465 + 72 = $537
Average inventory = ($535 + 537)/2 = $536
Therefore, adjusted inventory turnover ratio equals:
Inventory turnover ratio = COGS/Average inventory = $3,124/$536 = 5.83
如果题目给了要考虑valuation allowance, 是不是COGS要加上wirte-downs 并且 inventory 要用net计算?