Use the following financial statements to answer exercises below
The following are the income statement, the assets section of the balance sheet, and inventory disclosures from Terrific Toys, Inc., a toy manufacturer, for 2016.

Inventories
Inventories, net of an allowance for excess quantities and obsolescence, are stated at the lower of cost or market. Cost is determined by the first-in, first-out method.
-Use the financial information presented for Terrific Toys, Inc. to answer the following:
A. Compute the ratio of inventories to total current assets for 2016 and 2015. Explain the change.
B. Compute the inventory turnover for both 2016 and 2015. The 2014 ending inventories were $1,159,695. Interpret and explain the change in inventory turnover as a positive or a negative for the company.
C. What inventory costing method does Terrific Toys, Inc. use?

Question

Use the following financial statements to answer exercises below
The following are the income statement, the assets section of the balance sheet, and inventory disclosures from Terrific Toys, Inc., a toy manufacturer, for 2016.
  
  Inventories
Inventories, net of an allowance for excess quantities and obsolescence, are stated at the lower of cost or market. Cost is determined by the first-in, first-out method.
-Use the financial information presented for Terrific Toys, Inc. to answer the following:
A. Compute the ratio of inventories to total current assets for 2016 and 2015. Explain the change.
B. Compute the inventory turnover for both 2016 and 2015. The 2014 ending inventories were $1,159,695. Interpret and explain the change in inventory turnover as a positive or a negative for the company.
C. What inventory costing method does Terrific Toys, Inc. use?

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The Answer of Use the following financial statements to answer exercises below
The following are the income statement, the assets section of the balance sheet, and inventory disclosures from Terrific Toys, Inc., a toy manufacturer, for 2016.
  
  Inventories
Inventories, net of an allowance for excess quantities and obsolescence, are stated at the lower of cost or market. Cost is determined by the first-in, first-out method.
-Use the financial information presented for Terrific Toys, Inc. to answer the following:
A. Compute the ratio of inventories to total current assets for 2016 and 2015. Explain the change.
B. Compute the inventory turnover for both 2016 and 2015. The 2014 ending inventories were $1,159,695. Interpret and explain the change in inventory turnover as a positive or a negative for the company.
C. What inventory costing method does Terrific Toys, Inc. use?

Use the Following Financial Statements to Answer Exercises Below