Question: please answer the yellow sections based on the data provided. B Sales revenue has been decreasing because some of the client's product line has become

 please answer the yellow sections based on the data provided. B

please answer the yellow sections based on the data provided.

B Sales revenue has been decreasing because some of the client's product line has become obsolescent due to new products that the client is introducing. Cost of sales has decreased in proportion to sales (for example, if sales are down 10%, COS are also down by 10%] Inventory has not been adjusted to reflect obsolescence. Indicate how the following selected data and ratios might present themselves if inventory obsolescence is present for a material amount of ending inventory.. Use theseindicators P Recorded amount appears to be high Recorded amount appears to be low Recorded amount appears to be reasonable in the yellow cells APPARENT BEHAVIOR Sales Revenue REV Costof Sales COS Purchases PUR Cash disbursements CD Inventory INVe Use theseindicators Ratio appears to be high Ratio appears to be low Ratio appears to be reasonable in the yellow cells RATIO COS/INVE COS/REV PUR/CD COS/CD B Sales revenue has been decreasing because some of the client's product line has become obsolescent due to new products that the client is introducing. Cost of sales has decreased in proportion to sales (for example, if sales are down 10%, COS are also down by 10%] Inventory has not been adjusted to reflect obsolescence. Indicate how the following selected data and ratios might present themselves if inventory obsolescence is present for a material amount of ending inventory.. Use theseindicators P Recorded amount appears to be high Recorded amount appears to be low Recorded amount appears to be reasonable in the yellow cells APPARENT BEHAVIOR Sales Revenue REV Costof Sales COS Purchases PUR Cash disbursements CD Inventory INVe Use theseindicators Ratio appears to be high Ratio appears to be low Ratio appears to be reasonable in the yellow cells RATIO COS/INVE COS/REV PUR/CD COS/CD

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!