Question: Interpreting LCM Financial Statement Note Disclosure Zumiez Inc. is a leading action sports retailer, focusing on skateboarding, snowboarding, surfing, and BMX, selling some of its

Interpreting LCM Financial Statement Note Disclosure Zumiez Inc. is a leading action sports retailer, focusing on skateboarding, snowboarding, surfing, and BMX, selling some of its merchandise under the Blue Tomato brand. The company’s financial statement notes reported that “Merchandise inventories may include items that have been written down to our best estimate of their net realizable vale. Our decisions to write-down our merchandise inventories are based on their current rate of sale, the age of the inventory, the profitability of the inventory and other factors.” What ratios and financial measure(s) discussed in this chapter is the company likely using to monitor . . .
a. “. . . the current rate of sale”?
b. “. . . the age of the inventory”?
c. “. . . the profitability of the inventory”?

Step by Step Solution

★★★★★

3.55 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a the current rate of sale Inventory tur... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

577-B-A-V-I (1413).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

On April 12, Maddox Company declared a $3,600 account receivable from the Ward Company as uncollectible and wrote off the account. On December 5, Maddox received a $2,520 payment on the account from...

Refer to Practice 1611. (1) What deferred tax amount or amounts would appear on the balance sheet? (2) Prepare the financial statement note disclosure needed to identify the sources of the deferred...

Go to the SEC Edgar website and search for any company with which you are familiar that manufactures products. Read the companys financial statement note disclosure for inventory, both in note 1 and...

Statement and Note Disclosure, LCM, and Purchase Commitment Maddox Specialty Company, a division of Lost World Inc., manufactures three models of gear shift components for bicycles that are sold to...

Zumiez Inc. is a leading action sports retailer, focusing on skateboarding, snowboarding, surfing, and BMX, selling some of its merchandise under the Blue Tomato brand. The companys financial...

Hem M7-17 Interpreting LCM/NRV Financial Statement Note Disclosure [LO 7,5] 7 10 points Zumiez Inc. is a leading action sports retailer, seling its skateboarding, snowboarding, surfing, and B...

Zumiez Inc. is a leading action sports retailer, selling its skateboarding, snowboarding, surfing, and BMX merchandise under the Blue Tomato brand. The company's financial statement notes reported,...

1) i need help with part 1( adjusting entries ) i have done the journal entry , but do not know equation in balancing them. 2) please excuse my blank blance sheet on the dollar amount ( i feel like i...

E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, 7-3 [The following information applies to the questions displayed below.] Emily Company uses a periodic...

Abstract Accounting frameworks follow stipulations of existing Accounting Theories. This exploratory research sets out to trace the evolution of accounting theories of Charge and Discharge Syndrome...

Use the value of s2 found in Exercise 11.21(a) to compute: (a) A 99% confidence interval for the average amount of chemical that will dissolve in 100 grams of water at 50 C; (b) A 99% prediction...

One of the points of discussion between management and its consultants is the choice of the discount rate for this capital budgeting exercise. It was finally decided that the discount rate would be...

To achieve a Merit, you must also provide an evaluation of how strategic leadership and management skills contribute to organisational success. The evaluation of how strategic leadership and...

Larry recently invested $35,400 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is also $35,400. In addition,...

Derive thevenin's equivalent circuit for the given circuit across terminal A and B. Given the circuit parameters as mentioned below:- V1 = 80 v; R1 = 20 ohms ; R2 = 20 ohms; R3 = 10 ohms ; R4 = 10...

List five Risk identification methods Explain three of the listed techniques(methods) as they are used. Explain four basic types of Risk response Give examples of one each that can be used for...

Traits of leadership the leaders you will discuss are Maria Theresa, Mary Kay, and Martin Luther King. describe why each is considered a leader identify their traits that each leader possesses plus...

Carbohydrates can be polymers, just like proteins and nucleic acids, we have studied, so far. Yet carbohydrates differ from proteins in some aspects, what are they? Explain with some examples. How do...

What do you make of Philip Morriss problems with the fire-safe cigarette? What do you make of its new antismoking ad campaign targeted at children and teens? Is it significant that the company with...

Supply the missing dollar amounts for the income statement of Williamson Company for each of the following independent cases: Case A Case B Case C Sales Revenues $8,000 $6,000 $ ? Sales Returns and...

Using the information in E6-9, prepare journal entries to record the transactions, assuming Ace uses a perpetual inventory system. Data From E6-9. During the month of June, Ace Incorporated purchased...

During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $3,200 from Diamond Inc. with terms 2/10, n/30 5...

What is the effective annual rate ( EAR ) for a nominal rate ( monthly compounding ) of 5 . 5 2 %

The management of Mitchell Labs decided to go private in 2002 by buying all 3.10 million of its outstanding shares at $20.30 per share. By 2006, management had restructured the company by selling off...

Company A has 6,000 shares. The initial price was $3.50 /share and the current price is 3.75/ share. Company B initially had 900 shares at $10 /share and currently has 1,800 shares at $5.50 /share....