Adjusting Balance Sheet and Income Statement for LIFO to FIFOIn its December 2019 10-K, Phillips 66 reported the following information ($ millions).2019 Assets 2019 Inventories 2019 LIFO Reserve 2018 LIFO Reserve Tax Rate$46,976$3,021$3,440$2,32022%a. Determine the necessary adjustments to the following balance sheet line items for 2019.Note: Round your answers to the nearest whole dollar.InventoriesTotal assetsAdjustment ($ in millions)$$Deferred tax liabilities $Equity$b. Determine the necessary adjustments to the following income statement line items for 2019.Note: Round your answers to the nearest whole dollar.Adjustment ($ in millions)Cost of goods sold$Pretax income$Income tax expense$Net income$c. Compute the common-size inventories percentage with LIFO and with FIFO for 2019.Hint. Compute inventory as percent of total assets.Note: Round the percentage to one decimal place (for example, enter 14.6% for 14.55555%).Common size inventories percentage with LIFO for 2019Common size inventories percentage with FIFO for 2019%%Do we believe the difference is material?

Common Size Analysis -A technique used by financial managers to examine financial accounts is common…

Adjusting Balance Sheet and Income Statement for LIFO to FIFO In its December 2019 10-K, Phillips 66 reported the following information ($ millions). 2019 Assets 2019 Inventories 2019 LIFO Reserve 2018 LIFO Reserve Tax Rate $46,976 $3,021 $3,440 $2,320 22% a. Determine the necessary adjustments to the following balance sheet line items for 2 Note: Round I your answers to the nearest whole dollar. Inventories Total assots Adjustment ($ in millions) $

Adjusting Balance Sheet and Income Statement for LIFO to FIFO In its December 2019 10-K, Phillips 66 reported the following information ($ millions). 2019 Assets 2019 Inventories 2019 LIFO Reserve 2018 LIFO Reserve Tax Rate $46,976 $3,021 $3,440 $2,320 22% a. Determine the necessary adjustments to the following balance sheet line items for 2 Note: Round I your answers to the nearest whole dollar. Inventories Total assots Adjustment ($ in millions) $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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