Change in inventory methods: Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory. Disclosure Note: Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet , statement of cash flows , and statement of changes in equity. To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

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Answer 1

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 20, Problem 20.2BYP

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.

Disclosure Note:

Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.

To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

(2)

To determine

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

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Answer 2

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 20, Problem 20.2BYP

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.

Disclosure Note:

Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.

To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

(2)

To determine

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 20, Problem 20.2BYP

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.

Disclosure Note:

Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.

To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

(2)

To determine

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 20, Problem 20.2BYP

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.

Disclosure Note:

Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.

To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

(2)

To determine

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 20, Problem 20.2BYP

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.

Disclosure Note:

Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.

To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

(2)

To determine

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

Answer 6

Chapter 20, Problem 20.2BYP

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.

Disclosure Note:

Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.

To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

Answer 7

Chapter 20, Problem 20.2BYP

(1)

To determine

Change in inventory methods:

Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.

Disclosure Note:

Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.

To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.

Answer 8

(2)

To determine

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

Answer 9

(2)

To determine

To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 20 - Prob. 20.1Q Ch. 20 - There are three basic accounting approaches to...Ch. 20 - Prob. 20.3Q Ch. 20 - Lynch Corporation changes from the...Ch. 20 - Sugarbaker Designs Inc. changed from the FIFO...Ch. 20 - Most changes in accounting principles are recorded...Ch. 20 - Southeast Steel, Inc., changed from the FIFO...Ch. 20 - Prob. 20.8Q Ch. 20 - Its not easy sometimes to distinguish between a...Ch. 20 - For financial reporting, a reporting entity can be...

Solution Summary: The author explains how the company changed its method of valuing inventory from FIFO to LIFO during 2018 which was determined by the retail method.

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To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.

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