[nishvik]

Hi Ninja’s

I dont find any problems calculating them because that is pretty forward but when it gets to the point of analyzing them for Simulations I get stuck. Hence I am practising some of those and trying to be more comfortable with them. I am not 100% correct with them but may be somewhere betn 60-70 %.

Ok so here are some doubts I came accorss

1)The company failed to record materials in transit accrual for late supplier/vendor invoice accordingly adjusted journal entry was posted( I did not understand the call of the question).So how does this adjusting j/e affect Inventory turnover ratio which is 4.38 and Return on Equity which is 17.35%?

Solution given :

Inventory Turnover – Cost of Sales/Average Inventory.Purchases were not included in the ending inventory amount. Once added, the inventory turnover ratio decreases.

Return on Equity – Net Income/Equity. Cost of goods sold is reduced, which increases net income and the return on equity ratio.

2) Also say if we increase/decrease Inventory or Accounts receivable will it also affect COGS/Sales at the same time?

3) What effect does Dividend Declared and Dividend received have on Net Income and Retained Earnings?

If some one can please like explain me these I would be really glad for their help. I know lot of you are like champ in explaining the stuff.

Thanks and Good Luck

FAR- 79 -->Becker self study, Final review & Flashcards
REG -72-->Becker ,76-->Becker plus Wiley test bank
AUD- 73 Becker,72-->Becker+Wiley,69-->Added ninja notes,89 --> Added Gleim review
BEC- 84 Becker plus Wiley Test bank

I am Done !!!!