Question:

Assignment 3: Inventory Analysis and Final Project Week 1: Company Selection and Initial Research

Part One: Inventory Analysis

You own a jewelry store and you sell nothing but black diamond rings. As of January 1^st, you had 10 rings in stock at a cost of $1,000 each. You sold 60 rings during the year. You made several purchases over the fiscal year, which ended on December 31^st, as follows:

Date	Number of Rings Purchased	Cost per Ring	Total Cost
1-Feb	4	$1,000	$4,000
1-Apr	6	1100	$6,600
1-May	8	1100	$8,800
1-Jun	8	1150	$9,200
1-Aug	6	1175	$7,050
1-Oct	10	1200	$12,000
1-Nov	9	1175	$10,575
1-Dec	7	1150	$8,050
	58	$66,275
Beginning Inventory	10
Rings Available for Sale	68

Required:

1. What was the dollar amount for ending inventory using FIFO, LIFO, and average cost methods?
2. What is the impact on the balance sheet when using different methods of accounting for inventory?
3. Whywouldacompanyselectonemethodofaccountingforinventoryoveranother?

Part2

Required:

Choose any two companies that are in the same industry and listed on the NYSE or any other exchange. Collect the financial information for these two companies and make sure you have information that includes balance sheets, income statements, and statements of cash flow for the last three years. You may select any company except FedEx and Coca Cola.

1. Describe the key characteristics of the companies selected, such as the industry in which they operate, the products they provide, their rankings in the industry, etc.
2. Go to the company Web sites. Find the "About ...." section and note the company's commitment to corporate governance and identify the key features of its commitment.
3. Identify the main competitors for each selected company. Compare and contrast the reputations of the selected companies and their competitors.
4. Cite all sources used in your research on the two companies selected and their competitors in APA format.