What was the cost of goods sold by MHR in 2011 and 2010? What was the cost of inventory recognized as an expense in each year? Why do the amounts differ? Calculate MHR's gross margin and gross margin percentage for 2011 and 2010. Interpret the changed in the gross margin percentage.
Answer to relevant QuestionsDuring fiscal 2010 and 2011 MHR reported inventory writedowns. What is a write down and why was it necessary for MHR to write down some of its inventory? What were the amounts of the writedowns? Where is it reflected in the ...Is it possible for a company to have too much inventory? What are the consequences to a company like MHR of carrying too much inventory? What types of analytical tools could you suggest that might help determine that the ...What does it mean when a capital asset is impaired? Provide two examples of how a capital asset could become impaired.A cow owned by a dairy farm has a calf. If the calf wasn't fair valued at the end of each reporting period (the cost method was used instead), how would the calf be reported on the farm's balance sheet? Why does judgment by the managers who prepare financial statements play such an important role in determining an entity's depreciation expense? Be specific.
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