1.Tops Holding Corporation, the parent of Tops Markets, is a leading supermarket retailer in New York and Pennsylvania. Access the company's 10 K for the fiscal year ended January 1, 2011. You can find the 10 K by using EDGAR at www.sec.gov. Answer the following questions.
Required:
1. What inventory methods does Tops use to value its inventory?
2. When does the company take physical counts of its inventory?
3. A company that uses LIFO is allowed to provide supplemental disclosures reporting the effect of using another inventory method rather than LIFO. Using the supplemental LIFO disclosures provided by Tops, determine the income effect of using LIFO versus another method for the current fiscal year.
4. Calculate the company's inventory turnover ratio for the fiscal year ended January 1, 2011.
5. Assume that in the next fiscal year the company decides to switch to the average cost method. Describe the accounting treatment required for the switch.