Question

Computer the cost of good for the year and the inventory on the year-end balance sheet under the following inventory costing methods FIFO LIFO Average Cost Computing and Evaluating Inventory Turnover for Two Companies (LO2) Abercrombie & Fitch Co. (ANF) and TJX Companies Inc. (TKX) report the following information in their respective3 February 2013 10-K reports relating to their 2012 and 2011 fiscal years. a. Compute the 2012 inventory turnover for each of these two retailers. b. Discuss any difference you observe in inventory turnover between these two companies. Does the difference confirm your expectations given their respective business models? Explain. c. Describe ways that a retailer can improve its inventory turnover. Computing Depreciation Under Straight-Line and Double-Declining-Balance (LO3) A delivery van costing $21, 000 is expected to have $1, 800 salve value at the end of its useful life of five years. Assume that the truck was purchased on January 1. Compute the depreciation expense for the first two calendar years under the following depreciation methods.