The inventory for BCS, Inc. at the beginning of the year was $158,752,000. During the year, the

Question:

The inventory for BCS, Inc. at the beginning of the year was $158,752,000. During the year, the company purchased $5,731,600,300 of inventory. At the year-end, the value of inventory, after adjustment, was $102,003,250.
a. What was cost of goods sold during the year?
b. Calculate the . Is this ratio good if the company sells computers? Explain your answer.
c. If the was higher last year, what misstatements in the could explain the difference in turnover ratios for the two years?
d. If the was lower last year, what misstatements in the could explain the difference in turnover ratios for the two years?
e. If cost of goods sold is misstated, is net income correct? Is the value of inventory on the correct? Which misstatement do the auditors worry about the most?

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