| Beginning Inventory - BI | |
 The book value of goods, inputs, or materials available for use or sale at the beginning of an inventory accounting period. |
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 Beginning inventory is similar to ending inventory except that it is adjusted for any accounting discrepancies. BI is an important figure for companies because they use it to gauge new ordering requirements and to forecast future sales. Company managers can be evaluated based on their levels of beginning inventory and inventory turnover. |
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 Inventory Valuation For Investors: FIFO and LIFO - We go over these methods of calculating this component of the balance sheet, and how the choice affects the bottom line. Advanced Financial Statement Analysis - Learn what it means to do your homework before investing in a company. Get a deeper understanding of the structure of financial statements and what they tell you about a company's performance and reporting practices. Measuring Company Efficiency - We look at a retailer's inventory turnaround times, its receivables as well as its collection period. |
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