In teams, select a public company that interests you and is a business that requires inventory. Obtain the company's most recent annual report on Form 10-K. The Form 10-K is a company's annually required filing with the Securities and Exchange Commission (SEC). It includes the company's fi¬nancial statements and accompanying notes. The Form 10-K can be obtained either (A) from the investor relations section of the company's Web site or (B) by using the company search feature of the SEC's EDGAR database service found at www.sec.gov/edgar/searchedgar/companysearch.html.
1. Based on the information in the company's most recent annual report, answer the following questions:
A. What types of items are included in the company's inventory?
B. What inventory costing method or methods does the company use to determine the inventory amount reported on its balance sheet?
C. How much inventory does the company have at the end of the most recent year?
D. What percentage of total current assets is inventory during the three years presented? Has this percentage increased, decreased, or remained the same during this period?
E. How much cost of goods sold does the company report for the most recent year?
2. Using the information presented in the company's annual report, calculate the company's inventory turnover for the current and previous years. Based on this information, has the company's performance improved? Briefly explain your answer.