week 3 reply
kiace1
FISRT STUDENT
Nicole Saia posted
Hello class,
Note 1 includes accounting information. What is the fiscal year for your SEC 10-K Company?
The fiscal year in the McDonald’s 10-K report ended December 31, 2020; the report is for the time frame January 1, 2020 to December 31, 2020.
Inventory: How is Inventory described for your SEC 10-K company? LIFO, FIFO, and/or average cost? Relate your answer to topics in our course.
The company franchises and operates McDonald’s restaurants in 119 countries; a total of 39,198 restaurants, 93% of which were franchised. McDonald’s uses stock to manage its inventory and is handled on a FIFO basis. This guarantees freshness of the raw materials used within each restaurant.
Income Statement: Is it a single-step or multi-step income statement?
McDonald’s operates using a multi-step income statement.
Calculate the Gross Profit and the Gross Profit Percentage for this year and last year, creating a small table, such as the following:
This Year | Last Year | |
Net Sales | $ 19,207,800 | $ 21,364,400 |
Cost of Goods Sold | $ 11,883,800 | $ 12,294,600 |
Gross Profit | $ 7,324,000 | $ 9,069,800 |
Gross Profit Percentage | 38.2>#/p### | 42.5>#/p### |
Based on the calculations and chart above, McDonald’s sales decreased, cost of goods sold decreased, and gross profit decreased; gross profit percentage fell to 38.2%. The company composed of mainly franchises made no material changes to the corporate structure of in its methods of conducting business as of end of year December 31,2020. This profit loss was mainly seen due to the unfortunate events of the Covid-19 global pandemic
-N
SECOND STUDENT
Laura Wathen posted
Note 1 includes accounting information. What is the fiscal year for your SEC 10-K Company?
The fiscal year in the Apple Inc 2020 10-K was between September 28, 2020 and September 26, 2019.
Inventory: How is Inventory described for your SEC 10-K company?
Apple has been known for having sales in iPhone, iPad, and MacBook, for which it provides the best service. One of the main features of the iPhone is that the camera is quite good, and the speed is efficient. Apple inc. The inventory record-keeping method used by the company (FIFO / LIFO). Apple’s operated at a median inventory method of 0.005 thousand from fiscal years ending September 2015 to 2019.
Income Statement: Is it a single-step or multi-step income statement?
It is a multi-step Income Statement.
Calculate the Gross Profit and the Gross Profit Percentage for this year
| September 26, 2020. | September 28, 2019. | |
| Net Sales | $ 274,515,000 | $ 260,174,000 |
| Cost of Goods Sold | $ 151,286,000 | $ 144,996,000 |
| Gross Profit | $ 123,229,000 | $ 115,178,000 |
| Gross Profit Percentage | 44,8>#/td### | 44,3>#/td### |
As we can see, Apple is a great company because it has positive net sales between 2019 and 2020, even though after the pandemic, this company wasn't effective at all. Sales are more profitable in 2020 compared with the 2019 fiscal year. Also, the gross profit during the 2020 was 44,8% with $123,229,000 while during the 2019 was 44,3% with $115,178,000. This company has increased net sales making a lot of profit every year. Apple is slowly making a come back in sales to almost where they were in 2018. I cant wait to see more products with better technology, and I am an Apple lover brand.
