Ivanhoe Company took a physical inventory on December 31 and determined that goods costing $669,000 were on hand. Not included in the physical count were $11,000 of goods purchased from Pharoah Corporation, f.o.b. shipping point, and $27,000 of goods sold to Ro-Ro Company for $36,000, f.o.b. destination. Both the Pharoah purchase and the Ro-Ro sale were in transit at year-end. What amount should Ivanhoe report as its December 31 inventory

Ivanhoe should report as its December 31 inventory $707,000

Explanation:

According to the given data we have the following:

Inventory in hand= $669,000

goods purchased from Pharoah Corporation, f.o.b. shipping point= $11,000

cost of goods sold to Ro-Ro Company=$27,000

Therefore, in order to calculate the amount should Ivanhoe report as its December 31 inventory we have to make the following calculation:

inventory = Inventory in hand+goods purchased from Pharoah Corporation, f.o.b. shipping point+cost of goods sold to Ro-Ro Company

inventory =$669,000+$11,000+$27,000

inventory =$707,000

Ivanhoe should report as its December 31 inventory $707,000

c. working capital management.

Explanation:

The working capital shows a difference between the current asset and the current liabilities

In mathematically,

Working capital = Current assets - current liabilities

This interprets the liquidity and financial position of the business organization that is the current assets or current liabilities are converted into cash within one year or not

The rest decisions are depended upon the long term projects, long term growth, proper utilization of resources and fixed assets