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$52,848$3,398$3,870$2,61022%a. Determine the necessary adjustments to the following balance sheet line items for 2019.Note: Round your answers to the nearest whole dollar.Adjustment (S in millions)Inventories$46,008 xTotal assets%24Deferred tax liabilkies $54,108 x277 xEquity0 xb. Determine the necessary adjustments to the following income statement line items for 2019.Note: Round your answers to the nearest whole dollar.Adjustment ($ in millions)Cost of goods sold%240 xPretax income%240 xIncome tax expense $0 xNet income%24 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 20190 % x0% xDo we believe the difference is material? Yes + v

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 $52,848 $3,398 $3,870 $2,610 22% a. Determine the necessary adjustments to the following balance sheet line items for 2019. Note: Round your answers to the nearest whole dollar. Adjustment ($ in millions) Inventories %24 6,008 x Total assets %24 54,108 x Deferred tax liabilkies $ 277 x

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 $52,848 $3,398 $3,870 $2,610 22% a. Determine the necessary adjustments to the following balance sheet line items for 2019. Note: Round your answers to the nearest whole dollar. Adjustment ($ in millions) Inventories %24 6,008 x Total assets %24 54,108 x Deferred tax liabilkies $ 277 x

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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