财务会计课件 from Professor CarterChapter08.docx

财务会计课件 from Professor CarterChapter08.docx

《财务会计课件 from Professor CarterChapter08.docx》由会员分享，可在线阅读，更多相关《财务会计课件 from Professor CarterChapter08.docx（47页珍藏版）》请在冰豆网上搜索。

财务会计课件fromProfessorCarterChapter08

Chapter8

MerchandiseInventory

Inthischapteryouwilllearnhowmerchandiseinventoryaffectsbusinesses,howitiscontrolled,accountedfor,andreportedinfinancialstatements.

WhatIsMerchandiseInventory?

Theproductsmerchandising（retailing）companiesbuyandselltoindividualsand/orothercompaniesarecalledmerchandiseinventory.TheGap’smerchandiseinventoryincludesblouses,slacks,sweaters,shirts,socks,andbelts,tonamejustafewitems.Likeothermerchandisingcompanies,TheGapbuysproducts（merchandiseinventory）fromothercompanies,displaystheproductsinstoresandontheinternet,andsellsthemtocustomers.Thekeyelementofmerchandiseinventoryisitisaresourcethemerchandisingcompanycanuse.Merchandiseinventoryispurchasedtobesoldtocustomersatagreaterpricethanpaidbythemerchandisingcompany.Throughbuyingmerchandiseandsellingittocustomersathigherprices,merchandisingcompaniesincreasetheirresources（assets）overtime.

Intermsoftheaccountingequation,merchandiseinventoryisanasset,asshownbelow.Thenumbersinparenthesesrefertothechaptersinwhichtheitemsarediscussed.

Assets

CurrentAssets

Cashandcashequivalents（6）

Accountsreceivable（7）

AllowanceforUncollectible

Accounts（7）

Merchandiseinventory（8）

=

Liabilities

+

Stockholders'Equity

Revenues

Sales（7）

SalesReturns&Allowances（7）

OperatingExpenses

UncollectibleAccounts

Expense（7）

BankServiceExpense（6）

OtherRevenues&Expenses

InterestRevenue（6）

InterestExpense（6）

Theamountofmerchandiseinventorydiffersfromcompanytocompanyandfromyeartoyearwithinagivencompany.Forexample,Wal-Mart,thelargestretailcompanyintheUnitedStates,reportedmerchandiseinventoryof$33.2billiononJanuary31,2010.This$33.2billionwasapproximately19%ofWal-Mart’sJanuary31,2010totalassets.Aeon,thelargestretailcompanyoutsideoftheUnitedStates,reportedmerchandiseinventoryof334billionyenonFebruary28,2010.The334billionyenwasapproximately9%ofAeon’sFebruary28,2010totalassets.Oneyearearlier,onJanuary31,2009,Wal-Mart’smerchandiseinventorywas$34.5billionorapproximately21%ofWal-Mart’stotalassets.

Merchandising:

AnOverview

ThefollowingparagraphsbrieflydescribehowmerchandiseinventoryaffectsmerchandisingcompaniesbydiscussingonepartoftheoperationsoftheMatthewSportingGoodsCompany.AsyoumayrememberfromChapter7,theMatthewSportingGoodsCompanysellssportingequipmentandsuppliestoyouthorganizations.Thefollowingparagraphsarerestrictedtoonlythatpartofthecompany'soperationsrelatingtothesaleofcustomizedbaseballshirts.Eachshirtisimprintedwithateam'snameandlogo.AsshowninExhibit8-1,therearefourstepsinvolvedwiththecompany’smerchandiseinventory（baseballshirts）:

（1）thepurchaseofmerchandisefromsuppliers,

（2）thesaleofmerchandisetocustomers,（3）thecollectionofcashfromcustomers,and（4）thepaymentofcashtosuppliers.Aswillbeshown,theMatthewSportingGoodsCompanyattemptstoincreaseitsresourcesthroughthesefoursteps.

Exhibit8-1

MatthewSportingGoodsCompany

MerchandisingOperations

2A

Step1:

purchasemerchandiseoncreditfromsuppliersInordertosellbaseballshirtstocustomers,theMatthewSportingGoodsCompanymustpurchasetheshirtsfromothercompanies.Theseothercompaniescouldalsobemerchandisingcompaniesortheycouldbecompaniesthatmaketheshirts,calledmanufacturers.AlthoughtheMatthewSportingGoodsCompanydoespurchasesomeproductsbypayingcash,thevastmajorityofitspurchasesareoncredit.Thatis,thecompanybuysmerchandisebypromisingtopayforitinthenearfuture,oftenwithin30days.Asaresultofbuyingmerchandiseoncredit,thecompany'sresources（assets）increase,asshowninExhibit8-1bythearrowindicatingresourcescomingintothecompany（Step1）.Sincethesourceoftheseresourceswascreditors,thecompany'sliabilities,calledaccountspayable,alsoincrease.Ifthecompanybuys100shirtsatacostof$24pershirt,theeffectsofstep1,thepurchaseofmerchandisefromsuppliers,canbesummarizedasfollows.

TotalResources

=

SourcesofBorrowedResources

+

Sourcesof

OwnerInvestedResources

+

SourcesofManagement

Generated

Resources

Assets

=

Liabilities

+

Stockholders'Equity

Step1:

purchase

ofmerchandiseoncredit

+$2,400

=

+$2,400

Step2:

sellmerchandiseoncredittocustomersWhentheMatthewSportingGoodsCompanysellssomeofitsshirtstocustomers,twothingshappensimultaneously:

thecompany’sresourcesdecreasewhentheshirtsgotothecustomersandthecompany’sresourcesincreasewhenthecustomerseitherpayfortheshirtsorpromisetopayfortheshirtsinthenearfuture.Remember,thecompany’sbusinessistosellproducts,notgivethemaway!

Becauseknowledgeofeachofthesetwoeffectsisimportanttomanagers,thesaleofproductstocustomersisseparatedintoitstwoparts:

thedecreaseinresourceswhentheshirtsgotocustomersandtheincreaseinresourceswhenthecustomerspayorpromisetopayfortheshirts.

TheflowofmerchandisetocustomersWhentheMatthewSportingGoodsCompany’sshirtsgotoitscustomers,theobviouseffectisadecreaseinthecompany’sresources,asshowninExhibit8-1bythearrowindicatingresourcesgoingoutofthecompany（Step2,part2A）.Consistentwithourtreatmentofresourcesinpreviouschapters,thisdecreasemaybeviewedasaresultofmanagementusingupsomeresources.Theresources（shirts）werenotsenttocreditors,norweretheydistributedtoowners.Theresources（shirts）wereusedupbymanagementintheperformanceofmanagement’sresponsibilityforoperatingthecompany.Whenmanagementusesupresourcesintheoperationofthecompany,suchusesarereportedasexpenses.Withmerchandiseinventory,the“usingup”ofshirtsbythemgoingtocustomersisreportedasadecreaseinmerchandiseinventoryandanincreaseinanexpensecalledthecostofgoodssold.Sinceexpensesdecreasestockholders’equity,theultimateresultofshirtsgoingtocustomersisadecreaseinresources（assets）andanequaldecreaseinstockholders’equity（throughtheincreaseinthecostofgoodssold“expense”）.Ifall100oftheMatthewSportingGoodsCompany’sshirtsgotoitscustomers,theeffectscanbesummarizedaspresentedasstep2Abelow.Sinceeachoftheshirtscostthecompany$24,theresourcesdecreaseandstockholders’equitydecreaseare$2,400（100x$24）.

TotalResources

=

SourcesofBorrowedResources

+

Sourcesof

OwnerInvestedResources

+

SourcesofManagementGenerated

Resources

Assets

=

Liabilities

+

Stockholders'Equity

Step1:

purchase

ofmerchandiseoncredit

+$2,400

=

+$2,400

Step2A:

flowofmerchandisetocustomers（expense）

-$2,400

=

-$2,400

Totals

$0

=

+$2,400

+

-$2,400

Theflowofpromises（accountsreceivable）fromcustomersAtthesametimetheMatthewSportingGoodsCompany’scustomersreceivetheshirts,theymustgivesomethinginreturntothecompany.Usuallycustomersgiveeithercashorpromisesofcash.Thus,thecompanyreceiveseithercashoraccountsreceivable.Ineithercase,theobviouseffectisanincreaseinthecompany’sresources,asshowninExhibit8-1bythearrowindicatingresourcescomingintothecompany（Step2,part2B）.Consistentwithourtreatmentofresourcesinpreviouschapters,thisincreasemaybeviewedasaresultofmanagementgeneratingresources.Theresources（cashoraccountsreceivable）werenotborrowedfromcreditorsnorinvestedbyowners.Theresourcesweregeneratedbymanagementintheperformanceofmanagement’sresponsibilityforoperatingthecompany.Whenmanagementgeneratesresourcesintheoperationofthecompany,suchgenerationsarereportedasrevenues.Withthesaleofproductstocustomers,thereceiptofcashoraccountsreceivablefromcustomersisreportedasanincreaseincashoraccountsreceivableandanincreaseinarevenuecalledsales.Sincerevenuesincreasestockholders’equity,theultimateresultofthereceiptofcashoraccountsreceivablefromcustomersisanincreaseinresources（assets）andanequalincreaseinstockholders’equity（throughtheincreaseinsales“revenue”）.Ifthe100shirtsoftheMatthewSportingGoodsCompanyweresoldtoitscustomersoncredit,atapriceof$37each,theeffectscanbesummarizedaspresentedasstep2Bbelow.Theresourceincreaseandthestockholders’equityincreaseare$3,700（100x$37）.

TotalResources

=

SourcesofBorrowedResources

+

Sourcesof

OwnerInvestedResources

+

SourcesofManagementGenerated

Resources

Assets

=

Liabilities

+

Stockholders'Equity

Step1:

purchase

ofmerchandiseoncredit

+$2,400

=

+$2,400

Step2A:

flowofmerchandisetocustomers（expense）

-$2,400

=

-$2,400

Step2B:

flowofaccountsreceivablefromcustomers（revenue）

+$3,700

=

+$3,700

Totals

+$3,700

=

+$2,400

+

+$1,300

Step3:

collectcashfromcustomersWithinaveryshorttime,often30daysorless,theMatthewSportingGoodsCompanycollectscashfromcustomerstowhomitsoldshirtsoncredit.Asaresult,ascashincreasesandaccountsreceivabledecrease,thecompany’sresourcesincreaseanddecreasebythesamedollaramount,asshowninExhibit8-1bythearrowsatStep3.IftheMatthewSportingGoodsCompanycollectsallofitsaccountsreceivablefromitsc