Chris Davis

1
Chris Davis Sysco

• My Experience
• The Value of Accounting to a Corporate Executive
• Sysco
• Inventory Accounting
• Questions

2
My Experience

• Education
• Arthur Andersen
• Sysco Operations Review
• Sysco Management
• Baraboo
• Dallas
• Denver
• Oklahoma

3
Value of Accounting

• Personal Development
• Business Cycles
• Valuation
• Analysis
• Messy Stuff
• Presentations

4
Sysco Corporation

• History
• Organization
• Vision and Strategy

5
Inventory Accounting

• Purpose
• Components
• Net base
• Promotional allowances rebates
• Transfer costs
• FOB Cost
• Freight
• A/P Cost
• Commissionable costs
• Inventoriable direct costs

6
Example

• Net Base
• Allowances Promotions
• Transfer costs
• FOB Cost
• Freight
• A/P Cost
• Customer deviation
• Commissionable costs (equity)
• Allowances
• Financial cost
• Inventory direct costs (Unicap)
• Tax Cost

• 20.00
• 1.00
• 3
• 21.63
• 1.20
• 22.83
• - 0.50
• 24.01
• - 1.00
• 23.01
• - 0.25
• 22.76

7
Inventory Accounting

• Inventory Cost Considerations
• Add-ons for raising the pricing basis
• Paying commissions and incentives
• Revaluing inventory based on receipts and markets
• Recognizing gains and losses
• Reserves for add-ons
• Obsolete inventory write-off
• Pricing based on new costs
• Pricing based on next costs
• Costing to maximize gross profit
• Inventory velocity and carrying costs

8
Questions