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1. What does the company report for the following accounts for the most current fiscal year:

Enter your answer in millions.

a.	Net sales*	555233
b.	Beginning inventory	44435
c.	Cost of sales	420315
d.	Ending inventory	44949

*Be sure to exclude other revenue accounts.

2. Assume that the company projects the following:

Net sales and cost of goods sold will increase by 2% in the next fiscal year. Purchases are expected to be 103% of projected cost of sales.

Assume all other items remain unchanged from the prior year. Provide the next years forecasted balances:

Round your answer to the nearest million.

a.	Net sales	$fill in the blank 5
b.	Purchases	$fill in the blank 6
c.	Cost of sales	$fill in the blank 7
d.	Beginning inventory	$fill in the blank 8
e.	Ending inventory	$fill in the blank 9

3. What inventory costing method does the company use to value its inventory?

4. Is the inventory costing method used by the company more likely increase earnings or decrease taxes relative to other inventory costing methods when inventory prices are rising?

5. Compute the forecasted inventory turnover ratio. Round to two decimal places.

fill in the blank 12

6. How many days will it take to sell the inventory on hand? Use 365 days in a year. Round to the nearest day.

fill in the blank 13 days

7. Compute the gross profit ratio. Record your answer as a decimal rounded to two places rather than a percentage.

fill in the blank 14

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