- 38 -
shrinkage in the stub period can be fairly approximated by
multiplying the verified shrinkage by the ratio of (i) stub
period sales to (ii) sales for the entire physical inventory
cycle. The following table shows this analysis:
Verified Shrinkage Allocable to Stub Period
(in thousands of dollars)
Stub period sales
1983 1984 1985 1986 Total
Parent $2,394,894 $3,207,316 $4,147,484 $5,457,379 $15,207,073
Kuhn's 230,542299,992 353,714 424,967 1,309,215
Edwards 112,265150,491 157,650 182,945 603,351
Total 2,737,701 3,657,799 4,658,848 6,065,291 17,119,639
Sales between physical inventories that include stub period
1983 1984 1985 1986 Total
Parent $4,084,989 $5,063,087 $6,951,462 $8,908,722 $25,008,260
Kuhn's 389,005 465,129 551,540 656,671 2,062,345
Edwards 190,890 244,489 266,793 296,036 998,208
Total 4,664,884 5,772,705 7,769,795 9,861,429 28,068,813
Stub period sales as percent of sales between physical inventories
1983 1984 1985 1986 Total
Parent 58.6 63.3 60.0 61.3 60.8
Kuhn's 59.3 64.5 64.1 64.7 63.5
Edwards 58.8 61.6 59.1 61.8 60.4
Overall 58.7 63.4 60.0 61.5 61.0
Total verified shrinkage
1983 1984 1985 1986 Total
Parent $40,663 $67,543 $68,542 $ 99,253 $276,001
Kuhn's 5,532 8,159 6,100 7,302 27,093
Edwards 3,298 3,558 3,353 4,312 14,521
Total 49,493 79,260 77,995 110,867 317,615
9(...continued)
taken in the following period. For example, the physical
inventory results for the stub period that ended Jan. 31, 1984,
were reflected in the physical inventories taken in the 1984
taxable year.
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