Inventory Evaluation

dentify all three inventory methods including their advantages and disadvantages. Identify the inventory method used by your selected corporation. How does this corporation value its inventories? Why do you think the corporation selected this inventory method? Explain your answer. Use the cost of goods sold formula to compute net purchases, which are not reported in the corporation’s financial statements. Include your calculations. Determine your selected corporation’s inventory turnover and days’ sales in inventory for the most recent year end. (Round each ratio to one decimal place.) Find your selected corporation’s biggest competitor and access their annual report for the most recent year available. Determine the inventory turnover and days’ sales in inventory for the most recent year end of the competitor. (Round each ratio to one decimal place.) Based on the ratios calculated for your selected corporation and it’s largest competitor, compare the ratios of your selected corporation with that of it’s largest competitor. Conclude the essay by answering the following questions: Do you consider this an optimal analysis for determining whether to invest in your selected corporation? Why or why not? The conclusion should be built on the information you provided in the body of the essay. Do not introduce new ideas in the conclusion.

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