Question

In teams, select a public company that interests you and is a business that requires inventory. Obtain the company's most recent annual report on Form 10-K. The Form 10-K is a company's annually required filing with the Securities and Exchange Commission (SEC). It includes the company's financial statements and accompanying notes. The Form 10-K can be obtained either (A) from the investor relations section of the company's Web site of (B) by using the company search feature of the SEC's EDGA database service found at www.sec.gov/edgar/searchedgar/companysearch.html.

Directions

Base on the information in the company's most recent annual report, answer the following questions:

1. What types of items are included in the company's inventory?
2. Look at the current year and previous year inventory amounts. Did the amount increase or decrease and what do you think caused the change?
3. Does the company carry too much or too little inventory? What are some suggestions on how a company an manage the "carrying "of inventory?
4. What are your thoughts on how they should control their inventory since theft occurs more frequently internally than externally?

Write a three-paragraph letter these questions. Please make sure that the three paragraphs answer all of these questions. A paragraph is at least four sentences. Please use correct grammar and full sentences. Please do not copy and paste sentences directly from the textbook (use your own words). If sentences taken directly from the textbook should use proper citation. Points will be deducted for over-reliance on textbook language (more than 2 sentences for the entire assignment).(1000-1200 words)

(doesn't need to fit word count just please do as much as you can)

Answer 1

Answer by depending upon company's annual report:

In a public company, inventory account typically consists of four separate categories: raw materials, work in progress, finished products and merchandise. Raw materials represents materials purchased for production process, work in progress represents raw material in the process of being transformed into a finished product, finished goods are completed products. Merchandise represents finished goods a company buys from a supplier for future resale. The most common reason for changes in inventory levels is changes in total sales. Usually lower inventories point to quicker sales, whereas a buildup in inventory levels indicates a slowing sales pace.

A company can manage the carrying of inventory by availing the automated inventory management software, it reduces human efforts and errors and saves time. It will also help in keeping track of demand forecasts. Theft occurs more frequently internally than externally, to reduce loss of inventory by theft, a company can; prevent shoplifting(if have a physical store), make sure employees know that a careful track is being made, only trained and trusted employees should be allowed, keep track of user ID and passwords.

Its a good idea to password protect inventory tracking software and other business software. Password must be shared only with the employees who direct;y deal with inventory management or supply chain management.