Required information [The following information applies to the questions displayed below.] An annual report for National Paper Company included the following note: The last-in, first-out inventory method is used to value most of National Paper's U.S. inventories... If the first-in, first-out method had been used, it would have increased total inventory balances by approximately $303.0 million and $240.0 million at December 31, 2017, and 2016, respectively. For the year 2017, National Paper Company reported net income (after taxes) of $2,444.0 million. At December 31, 2017, the balance of National Paper Company's retained earnings account was $6,180 million.
Required information [The following information applies to the questions displayed below.] An annual report for National Paper Company included the following note: The last-in, first-out inventory method is used to value most of National Paper's U.S. inventories... If the first-in, first-out method had been used, it would have increased total inventory balances by approximately $303.0 million and $240.0 million at December 31, 2017, and 2016, respectively. For the year 2017, National Paper Company reported net income (after taxes) of $2,444.0 million. At December 31, 2017, the balance of National Paper Company's retained earnings account was $6,180 million.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
41.
Accounting ..........
![Required information
[The following information applies to the questions displayed below.]
An annual report for National Paper Company included the following note:
The last-in, first-out inventory method is used to value most of National Paper's U.S. inventories... If the first-in, first-out
method had been used, it would have increased total inventory balances by approximately $303.0 million and $240.0
million at December 31, 2017, and 2016, respectively.
For the year 2017, National Paper Company reported net income (after taxes) of $2,444.0 million. At December 31, 2017,
the balance of National Paper Company's retained earnings account was $6,180 million.
Required:
1. Determine the amount of net income that National Paper would have reported in 2017 if it had used the FIFO method (assume a 30
percent tax rate). (Enter your answer in millions. Round your intermediate and final answer to 1 decimal place.)
Net income
million](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7b6ce77-7d1f-42c7-90fc-6e082dc1db1b%2Fb515c3e7-f386-4664-a914-bb32456c8bf5%2Fp2chuth_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
An annual report for National Paper Company included the following note:
The last-in, first-out inventory method is used to value most of National Paper's U.S. inventories... If the first-in, first-out
method had been used, it would have increased total inventory balances by approximately $303.0 million and $240.0
million at December 31, 2017, and 2016, respectively.
For the year 2017, National Paper Company reported net income (after taxes) of $2,444.0 million. At December 31, 2017,
the balance of National Paper Company's retained earnings account was $6,180 million.
Required:
1. Determine the amount of net income that National Paper would have reported in 2017 if it had used the FIFO method (assume a 30
percent tax rate). (Enter your answer in millions. Round your intermediate and final answer to 1 decimal place.)
Net income
million
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