Comparing CompaniesStudent Name:Course/Number:Due Date:Faculty Name:1. What method does the company use to determine the cost of inventory for the fiscal year?Both the companies used First-in first-out inventory method to determine the cost of inventory.2. Compute the inventory turnover ratio for the fiscal year. Also, compute it for the previous two fiscalyears. What conclusions can you make?Fiscal Year Ended 31 January2016Fiscal Year Ended 1Feb 2015Inventory RatioInventory RatioLowe'sinventory9458891190166Companies inc. COGS3850419558The Homeinventory11809110797974DeportCOGS5425454787For the fiscal year, inventory turnover ratio is 90 days for Lowe's Companies inc. Whereas, The Home Depotis 79 days which is lower than their competitor. Moreover, inventory turnover ratio of The Home Deport forprevious fiscal years is also battering then Lowe's Companies Inc.3. What method of depreciation does the company use? Does the company use the same method for allfixed assets, or are different classes of assets depreciated differently?All of the assets of both companies like Buildings, Furniture, Fixtures and Equipment have are depreciatedunder the same method which is a straight-line method.4. What is the amount of accumulated depreciation and amortization at the end of the most recentreporting year?The Accumulated depreciation and amortization for THE HOME DEPOT, INC are 17,075/- millions and forLowe's Companies inc. are 16,336/- milli ...
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