Reformulating Balance Sheet and Income Statement Items for LIFO to FIFO In its December 2019 10-K, LyondellBasell Industries reported the following information ($ millions). Cost of LIFO Decrease in Total Net Goods Sold Inventories Reserve LIFO Reserve Assets Income $128 $30,435 $3.397 $29,301 $4,588 $670 Reformulate the account balance for the following financial statement items assuming the company used FIFO instead of LIFO for its inventory costing method. The company has a 22% tax rate. Note: Round answers to the nearest whole number. Account a. Inventories b. Total assets c. Cost of goods sold $ d. Net income $ $ $ Balance 5,258 ✔ 31,105 29,429 ✔ 3,361 x

Reformulating Balance Sheet and Income Statement Items for LIFO to FIFO In its December 2019 10-K, LyondellBasell Industries reported the following information ($ millions). Cost of LIFO Decrease in Total Net Goods Sold Inventories Reserve LIFO Reserve Assets Income $128 $30,435 $3.397 $29,301 $4,588 $670 Reformulate the account balance for the following financial statement items assuming the company used FIFO instead of LIFO for its inventory costing method. The company has a 22% tax rate. Note: Round answers to the nearest whole number. Account a. Inventories b. Total assets c. Cost of goods sold $ d. Net income $ $ $ Balance 5,258 ✔ 31,105 29,429 ✔ 3,361 x

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Shockley Co. reported the following amounts in its financial statements: (a) Cost of goods sold (b) Profit (c) Total current assets (d) Equity a. Cost of goods sold: Reported Adjustments: Dec. 31, 2020 error Dec. 31, 2021 error In making the physical counts of inventory, the following errors were made: • Inventory on December 31, 2020: understated $80,000 • Inventory on December 31, 2021: overstated $22,000 Corrected b. Profit: Required: For each of the preceding financial statement items-(a), (b), (c), and (d)-prepare a schedule similar to the following and show the adjustments that would have been necessary to correct the reported amounts. (Negative answers should be indicated by a min sign.) Reported Adiustments: Dec. 31. 2020 error $ $ $ $ 2020 Financial Statements for Year Ended December 31. 2022 820,000 281,000 2020 2021 765,000 $ 897,000 $ 270,000 325,000 1,255,000 1,365,000 1,387,000 1,530,000 270,000 $ 80.0001 2021 1,200,000 1,332,000 2022 765,000 $ 897,000 $ 820,000 (80,000)…
Required: Complete Solution
What is the adjusted net income of the firm for the year ended December 31, 2021?
1 Moore is considering a $180,000 investment with the following net cash flows. Moore requires a 10% return on its investments. Calculate the NPV and IRR below. In the dropdown box, select whether each indicates whether Moore should accept the investment. 2 3 Year 4 Initial investment 5 1 6 7 8 9 10 11 12 13 14 15 NPV 16 17 IRR 18 19 20 2 4 5 Net Cash Flows (180,000) 60,000 40,000 70,000 125,000 35,000
Accounting Tulip Company decided to change from LIFO to FIFO inventory costing, effective January 1, 2020. The following data were available: Pretax Operating Excess of FIFO Ending Inventory Year Income using over LIFO Ending Inventory LIFO 2020 $40,000 $8,000 2019 20,000 7,000 2018 30,000 4,000 The income tax rate is 35%. The company began operations on January 1, 2018, and has paid no dividends since inception. Required: Answer the following questions relating to the 2019-2020 comparative financial statements. а. What is net income for 2020? b. What is restated net income for 2019? Prepare the 2019 statement of retained earnings as it would appear in the comparative 2019-2020 financial statements. С.
A company reports the following financial information: Inventory, December 31, 2019 Inventory, December 31, 2020 Net Sales for 2020 $ 75,000 125,000 850,000 Cost of Goods Sold for 2020 400,000 The company's inventory turnover ratio is closest to O 0.19 times O 4.00 times O 2.13 times O 5.33 times
A company is considering two mutually exclusive investments with a discount rate of 10%.The cash flows of the projects over time follows: Time Project A Project B 0 - RM300,000 - RM405,000 1 - RM387,000 RM134,000 2 - RM193,000 RM134,000 3 - RM100,000 RM134,000 4 RM600,000 RM134,000 5 RM600,000 RM134,000 6 RM850,000 RM134,000 7 - RM180,000 RM0 Question: The company does not want to issue new share capital or debentures to financethis project. Recommend three (3) appropriate financing methods for this project.Provide support for your recommendations.
Calculate Inventory Turnover Accounts Receivable Turnover PPE Turnover Asset Turnover
Please answer in text form without image
G
Caterpillar Inc (CAT) has the following excerpts from their financial statements December 31, 2021 December 31, 2020 Inventory (in $ Millions) 14,038 11,402 Net Income(in $ Millions) 6,489 2,998 Inventories are principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis. If the FIFO (first-in, first-out) method had been in use, inventories would have been $3,258 million and $2,921 million higher than reported at December 31, 2021 and 2020, respectively. Assume corporate tax rate of 21%. If CAT had used FIFO method instead of LIFO method What inventory (in $ Millions) would CAT report for 2021? What net income (profit) would CAT report in 2021? What is the cumulative amount of income tax savings that CAT generated through end of 2021 by using LIFO instead of FIFO? What…
Restate the financial statements(attached) in terms of CPPand prepare a new financial statements