Assignment: Inventory Analysis and Final Project: Company Selection and Initial Research
Part One: Inventory Analysis
You own a jewelry store and you sell nothing but black diamond rings. As of January 1st, you had 10 rings in stock at a cost of $1,000 each. You sold 60 rings during the year. You made several purchases over the fiscal year, which ended on December 31st, as follows:
|
Date
|
Number of Rings Purchased
|
Cost per Ring
|
Total Cost
|
|
1-Feb
|
4
|
$1,000
|
$4,000
|
|
1-Apr
|
6
|
1100
|
$6,600
|
|
1-May
|
8
|
1100
|
$8,800
|
|
1-Jun
|
8
|
1150
|
$9,200
|
|
1-Aug
|
6
|
1175
|
$7,050
|
|
1-Oct
|
10
|
1200
|
$12,000
|
|
1-Nov
|
9
|
1175
|
$10,575
|
|
1-Dec
|
7
|
1150
|
$8,050
|
|
|
58
|
$66,275
|
|
|
Beginning Inventory
|
10
|
|
|
|
Rings Available for Sale
|
68
|
|
|
Required:
1. What was the dollar amount for ending inventory using FIFO, LIFO, and average cost methods?
2. What is the impact on the balance sheet when using different methods of accounting for inventory?
3. Why would a company select one method of accounting for inventory over another?
Part 2
Required:
Choose any two companies that are in the same industry and listed on the NYSE or any other exchange. Collect the financial information for these two companies and make sure you have information that includes balance sheets, income statements, and statements of cash flow for the last three years. You may select any company except FedEx and Coca Cola.
1. Describe the key characteristics of the companies selected, such as the industry in which they operate, the products they provide, their rankings in the industry, etc.
2. Go to the company Web sites. Find the "About ...." section and note the company's commitment to corporate governance and identify the key features of its commitment.
3. Identify the main competitors for each selected company. Compare and contrast the reputations of the selected companies and their competitors.
4. Cite all sources used in your research on the two companies selected and their competitors in APA format.