Inventory is normally the largest current asset shown on the balance sheet of a merchandising and manufacturing company. Companies can utilize the perpetual or the periodic inventory method to record their inventory transactions. They also have a choice in the method used to determine the amount of cost of goods sold reported on the income statement. Use the internet to locate the annual report of a public corporation. 1. Identify the name of the company you have chosen. 2. Review the balance sheet and income statement. 3. What is the amount shown in the Inventory Account? 4. The Inventory Account represents what percentage of the total current assets of the company? Continue your review of the income statement. 5. What is the amount of cost of goods sold listed on the Income Statement? 6. What method was chosen to calculate the cost of goods sold amount? (Hint: You will need to read the notes to the financial statements in order to answer this question.) Calculate and analyze the inventory ratios. 7. Calculate the Inventory Turnover Ratio and the Average Days in Inventory. 8. What are these ratios indicating about the company?