Problem: A company's annual report usually will identify the inventory method used. You can analyze the effects of the inventory method if you have the income statement and balance sheet of a company. Go to the Cisco website(see attachments).
Address the following questions based on the current year's Annual Report on Cisco's website:
1. At Cisco's fiscal year-end, what was the net inventory on the balance sheet?
2. How has this changed from the previous fiscal year-end?
3. How much of the inventory was finished goods?
4. What inventory method does Cisco use?
5. Is inventory considered a current or noncurrent asset?
6. What is obsolescence? Should all companies report the amount of obsolete inventory on-hand? Why or why not?