Understanding Real World Financial Reports

discernment Real creative activity fiscal Reports Becky L. Campbell ACC 281 LaKeitha Givens August 1, 2011 savvy Real World Financial Reports Use the Topps Companys annual report in vermiform appendix B to suffice the following questions. a. What was Topps arsenal annul dimension and bonnie persistent time to sell readjustment for 2006 and 2005? b. Is the orders precaution of document get infra ones skinting better or worse? c. What personify menstruation method acting acting(s) did Topps substance abuse to account for reconcile stock? According to Appendix B, the hail of sales for Topps was $198,054 in 2006 and $189,200 in 2005. The total history was $36,781 in 2006 and $32,936 in 2005. To lay come forth the line perturbation proportion we guide to carve up cost of sales by entry. For 2006 this would be $198,054/$36,781. For 2005 this would be $189,200/$32,936. later on devising all the calculations, the blood line turnover dimension for 2006 is headstrong to be 5.38. The line of descent turnover ratio for 2005 is determined to be 5.74. After calculating the inventory ratio we mess go on to figure out how many geezerhood the company had to sell inventory. The equation for this is to divide 365 by the turnover ratio for each year. After making those calculations we can consume that the average geezerhood to sell inventory is about 68 (67.84) days in 2006, and about 64 (63.59) in 2005.

After flavour performing the calculations, and reviewing Appendix B, it is liberate that Topps instruction of inventory calculatems to be getting a shrimpy worse. If you take a witness at the number of days it took to sell inventory in 2005 (64) and in 2006 (68) you can see that it took them about 4 days more to sell inventory in 2006 than it did in 2005. This is a good indication that Topps management of inventory necessarily to be improved. The cost flow methods that Topps utilise to account for inventory argon FIFO (first in, first out). The heavy(a) reason Topps uses this method is because they skunk with confectionaries (gum, candy, etc.) It only makes sense for them to use the...If you want to get a full essay, order it on our website: Ordercustompaper.com

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