专业英语会计学hap008.pptVIP

The Retail Method The retail method of estimating inventory requires that management determine the value of ending inventory at retail prices. In March of 2005, ChemCo’s inventory was destroyed by fire. At the time of the fire, ChemCo’s management collected the following information: The Retail Method ChemCo would follow the steps below to estimate their ending inventory using the retail method. Measures how quickly a companysells its merchandise inventory. A ratio that is low compared to competitors suggests inefficient use of assets. Average Inventory = (Beg. Inv. + End. Inv.) ÷ 2 Financial