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accounting problem.

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Exercise 6-1;Columbia Bank and Trust is considering giving Gallup Company a loan. Before doing so, it decides that further discussions with Gallup?s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $280,940. Discussions with the accountant reveal the following.;1.Gallup sold goods costing $55,690 to Bazil Company FOB shipping point on December 28. The goods are not expected to reach Bazil until January 12. The goods were not included in the physical inventory because they were not in the warehouse.2.The physical count of the inventory did not include goods costing $90,860 that were shipped to Gallup FOB destination on December 27 and were still in transit at year-end.3.Gallup received goods costing $27,270 on January 2. The goods were shipped FOB shipping point on December 26 by Lynch Co. The goods were not included in the physical count.4.Gallup sold goods costing $51,550 to Lamey of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Gallup?s physical inventory.5.Gallup received goods costing $42,900 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $280,940.;Determine the correct inventory amount on December 31.;The correct inventory amount on December 31: $;Exercise 6-10;Suppose this information is available for PepsiCo, Inc. for 2012, 2013, and 2014.;(in millions);2012;2013;2014;Beginning inventory;$1,776;$2,129;$2,360;Ending inventory;2,129;2,360;2,451;Cost of goods sold;17,961;20,008;19,692;Sales revenue;39,362;42,389;42,366;Calculate the inventory turnover for PepsiCo., Inc. for 2012, 2013, and 2014. (Round inventory turnover to 1 decimal place, e.g. 5.1.);2012;2013;2014;Inventory turnover;times;times;times;Calculate the days in inventory for PepsiCo., Inc. for 2012, 2013, and 2014. (Round days in inventory to 1 decimal place, e.g. 5.1.);2012;2013;2014;Days in inventory;days;days;days;Calculate the gross profit rate for PepsiCo., Inc. for 2012, 2013, and 2014. (Round gross profit rate to 1 decimal place, e.g. 5.1%.);2012;2013;2014;Gross profit rate;%;%;%

 

Paper#76857 | Written in 18-Jul-2015

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