CP7-2 Finding Financial Information LO7-2,
7-4, 7-5, 7-7
file name: MBA6014 unit4 CP7-2.xls File type: .xls PRICE: $8
CP7-2 Refer to the financial statements of Urban Outfitters given in Appendix
C at the end of this book.
Required:
1. The company uses lower of cost or market to
account for its inventory. At the end of the year, do you expect the company to
write its inventory down to replacement cost or net realizable value? Explain
your answer.
2. What method does the company use to
determine the cost of its inventory? Where did you find this information?
3. If the company overstated ending inventory
by $10 million for the year ended January 31, 2012, what would be the corrected
value for Income before Income Taxes?
4. Compute the inventory turnover ratio for
the current year. What does an inventory
turnover ratio tell you?
TUTORIAL
PREVIEW
Where did you find this information?|
This information is dislosed in Note
2 under "Inventories".
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