Depending on the circumstances, the Judge may or may not grant that request. You should ask the IRS attorney if he or she will agree with the request for continuance and you should let the Tax Court know if there is any objection. The Judge may or may not grant your request for continuance.
If differences exist, then adjustments should be made to get the accounting counts to match the warehouse counts. A full physical inventory is usually performed when all inventory movements are stopped to ensure better accuracy. Cycle counts represent a procedure to validate inventory quantity in the accounting system through regular partial counts.
With a smaller number, it is expected that your inventory is not very old, and that more of it is in saleable condition. It also represents a business that is in a more liquid position. Computed: Days of Inventory On Hand is calculated by first dividing the cost of goods sold by 360. Then divide the current inventory by the number you have just obtained with the first step. Days of Inventory On Hand Defined: This calculation tells you that if you were to stop ordering merchandise, how soon would you have an empty building.