Asset Valuation Paper: Piggly Wiggly, Inc.

Subject  > Businesss Research Papers  > Accounting

Piggly Wiggly, Inc. is a national chain of convenience stores. They sell franchise stores to independent owners. Because Piggly Wiggly is a large national chain, individual franchised stores receive corporate buying power, provided they continue to pay a yearly franchise fee. This buying power allows the independent owners discounted prices on goods, mutual advertisements, and rebates from large venders such as Pepsi Co., and Coke. By retaining a Piggly Wiggly franchise, independent owners are also provided with access to a computerized inventory system that aids the store in re-ordering sold goods. The inventory at Piggly Wiggly will contain both perishable and non-perishable items. All items will be ordered by the store manager on a weekly basis. The majority of non-perishable goods ...

... be capitalized. Recommended Depreciation Methods Piggly Wiggly has and will continue to use the straight-line method. The straight line depreciation method depreciates an asset by a constant amount every year. The yearly depreciation amount is calculated by first subtracting the salvage value from the purchase cost and then dividing the difference by the useful life of the asset. Conclusion. The recommended policies outlined above are based on a careful analysis of the Piggly Wiggly Franchise's products, its structure, and the situation at hand. The Bakers should build upon their current inventory system, which is a perpetual inventory system, by combining it with a periodic inventory system. This will allow them to minimize any discrepancies in inventory. Furthermore, the

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