Question: SUPERVALU reported the following data in its annual report. (a) Compute SUPERVALU's inventory turnover ratio s for 2009 and 2010, using:(1) Cost of sales and

SUPERVALU reported the following data in its annual report.

Feb. 23, 2008 Feb. 28, 2009 $44,564 34,451 2,967 2,709 Feb. 27,

(a) Compute SUPERVALU's inventory turnover ratios for 2009 and 2010, using:(1) Cost of sales and LIFO inventory.(2) Cost of sales and FIFO inventory.(b) Some firms calculate inventory turnover using sales rather than cost of goods sold in the numerator. Calculate SUPERVALU's 2009 and 2010 turnover, using:(1) Sales and LIFO inventory.(2) Sales and FIFO inventory.(c) Describe the method that SUPERVALU's appears to use.

Feb. 23, 2008 Feb. 28, 2009 $44,564 34,451 2,967 2,709 Feb. 27, 2010 $40,597 31,444 2,606 2,342 $44,048 33,943 2,956 2,776 Total revenues Cost of sales (using LIFO) Year-end inventories using FIFO Year-end inventories using LIFO

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Feb 23 Feb 28 Feb 27 2008 2009 2010 Revenues 44048 44564 40597 Cost of sales 33943 34451 ... View full answer

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