This discussion addresses the Unit Learning Objectives - Account for merchandising transactions using the perpetual inventory system and using the periodic inventory system.  Go to the websites for Lowe's, Target, Walmart .Locate the most recent annual report and review the financial statements of each company.   Respond to the following questions: 

1. What year is covered by the report?

2. What do these three corporations have in common - your answer should refer to type of business and ownership?

3. Determine the inventory costing method used by each company.  Are there differences and why? 

4. How does each of the companies treat shipping costs? 

5. For each company, calculate the following ratios and comment:

1.The current ratio

2.The acid-test ratio

3.The debt ratio

4.The profit margin ratio

5. The gross margin ratio

Answer rating: 100% (QA)

Depending on which particular annual report you are looking at for Lowes Target or Walmart the year covered by the report will change It is crucial to ... View the full answer