Short-Term Operating Assets: Inventory
Gross Profit Method
A tsunami destroyed Kyoto Company's warehouse and all of its inventory. Kyoto's management believes that last year's gross profit percentage is a good estimate of the gross profit in the current year. Selected prior year and current year data for Kyoto is given below.
		Prior year ending inventory	$5,097
		Prior year sales	$48,540
		Prior year cost of goods sold	$27,490
		Current year net sales	$28,903
		Current year inventory purchases	$18,005
		Purchased inventory not delivered	$45
Use the blue shaded areas on the ENTERANSWERS tab for inputs.
Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.
Requirements
1	Calculate Kyoto's historical gross profit percentage.
2	Calculate Kyoto's estimated cost of goods sold.
	a.	Use cell references from prior calculations, if applicable.
3	Calculate Kyoto's estimated gross profit.
	a.	Use cell references from prior calculations, if applicable.
4	Calculate Kyoto's estimated ending inventory.
	a.	Use cell references from prior calculations, if applicable.
Saving & Submitting Solution
1	Save file to desktop.
	a.	Create folder on desktop, and label COMPLETED EXCEL PROJECTS
2	Upload and submit your file to be graded.
	a.	Navigate back to the activity window - screen where you downloaded the initial spreadsheet
	b.	Click Choose button under step 3; locate the file you just saved and click Open
	c.	Click Upload button under step 3
	d.	Click Submit button under step 4
Viewing Results
1	Click on Results tab in MyAccountingLab
2	Click on the Assignment you were working on
3	Click on Project link; this will bring up your Score Summary
4	Within Score Summary window, click on Download (upper right) to download the spreadsheet with feedback

Answer rating: 100% (QA)

ShortTerm Operating Assets Inventory Inventory is a crucial component of shortterm operating assets ... View the full answer