ACC 422 Week 3 Team Assignment (Case 3, CA 8-10, Problem
9-3, Problem 9-13)
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Complete the following four deliverables for this assignment as a team:
1.
Case 3: The Kroger Company, p. 440 Complete the following
individually and discuss your individual answers as a team: 1.
CA
8-10, p. 437 2. Problem 9-3, p. 483 3. Problem 9-13, p. 487 After
discussing your answers, compile each into a team response. Click the
Assignment Files tab to submit your assignment. The Kroger Company
reported the following data in its annual report (in millions). (a)
Compute Kroger’s inventory turnovers for fiscal years ending January
31, 2015, and February 1, 2014, 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 Kroger’s fiscal years ending January 31, 2015,
and February 1, 2014, turnover, using: (1) Sales and LIFO inventory. (2)
Sales and FIFO inventory. (c) State which method you would choose to
evaluate Kroger’s performance. Justify your choice. CA8-10 WRITING
(FIFO and LIFO) Harrisburg Company is considering changing its
inventory valuation method from FIFO to LIFO because of the potential
tax savings. However, management wishes to consider all of the effects
on the company, including its reported performance, before making the
final decision. The inventory account, currently valued on the FIFO
basis, consists of 1,000,000 units at $8 per unit on January 1, 2017.
There are 1,000,000 shares of common stock outstanding as of January
1, 2017, and the cash balance is $400,000. The company has made the
following forecasts for the period 2017–2019. Instructions (a) Prepare a
schedule that illustrates and compares the following data for Harrisburg
Company under the FIFO and the LIFO inventory method for 2017–