Part A is finished. I need help finding out how to find part B\'s information an

Question

Part A is finished. I need help finding out how to find part B's information and then calculating it. I also need help on calculating part C and where to find the information.

Real World Case 8-9 Effects of inventory valuation methods; Whole forwarding of submission by companies and others who are required by Foods Market LO8-4, LO8-5, LO8-7 SEC) All publicly traded domestic companies use EDGAR to make EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and law to file forms with the U.S. Securities and Exchange Commission the majority of their filings. (Some foreign companies file voluntarily.) Form 10-K, which includes the annual report, is required to be filed on EDGAR. The SEC makes this information available on the Internet Required 1. Access EDGAR on the Internet. The web address is OV 2. Search for Whole Foods Market, Inc. Access the 10-K filing for the most recent fiscal vear. Search or scroll to find the financial statements and related notes 3. Answer the following questions related to the company's inventories value its a. What method(s) does the company use to b. Calculate what cost of sales would have been for the year if c. Calculate inventory turnover for the year using the reported inventories? the company had used FIFO to value its inventories numbers

Explanation / Answer

Hi, hope you are able to access Form 10-K. Here I am refering to the annual report for the Fiscal Year ended September 27,2015. (You can rework the same with any yesr's data)

If you look under Item No. 7 'Management’s Discussion and Analysis of Financial Condition and Results of Operations', there, under the heading Inventory, the Company discloses the details about its inventory valuation. It can be seen that for majority of the items, LIFO method is used.

Also, you can find the following information there:

"The excess of estimated current costs over LIFO carrying value, or LIFO reserve, was approximately $49 million and $48 million at September 27, 2015 and September 28, 2014, respectively. "

(Note: The same is also mentioned in the Notes to Financial Statements)

Inorder to find the impact on cost of sales if the Company had used FIFO, the LIFO reserve mentioned above should be added to the closing inventory. This will reduce the cost of sales to the same extent. (in this case $49 million in 2015)

Part C

The Inventory Turnover can be calculated as - Cost of goods sold/Average Inventory

Cost of Goods Sold = 9,973 million $

Average Inventory = (441+500)/2 = 470.5 million $

Inventory Turnover = 9973/470.5 = 21.2

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