Compute the amount of ending inventory that would have been reported in the current year if Company S uses only FIFO method.

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Answer 1

Question

Chapter 7, Problem 7.17E

1.

To determine

Compute the amount of ending inventory that would have been reported in the current year if Company S uses only FIFO method.

2.

To determine

Compute the amount of cost of goods sold that would have been reported if Company S had used only FIFO method for both years.

3.

To determine

Explain the reason that Company S chose to us LIFO for certain inventories.

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Financing Deficit Stevens Textile Corporation's 2019 financial statements are shown below: Just need the correct LOC? Balance Sheet as of December 31, 2019 (Thousands of Dollars) Cash $ 1,080 Accounts payable $ 4,320 Receivables 6,480 Accruals 2,880 Inventories 9,000 Line of credit 0 Total current assets $16,560 Notes payable 2,100 Net fixed assets 12,600 Total current liabilities $ 9,300 Mortgage bonds 3,500 Common stock 3,500 Retained earnings 12,860 Total assets $29,160 Total liabilities and equity $29,160 Income Statement for December 31, 2019 (Thousands of Dollars) Sales $36,000 Operating costs 34,000 Earnings before interest and taxes $ 2,000 Interest 160 Pre-tax earnings $ 1,840 Taxes (25%) 460 Net income $ 1,380 Dividends (40%) $ 552 Addition to retained earnings $ 828 Stevens grew rapidly in 2019 and financed the growth with notes payable and long-term bonds. Stevens expects sales to…

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Answer 2

Question

Chapter 7, Problem 7.17E

1.

To determine

Compute the amount of ending inventory that would have been reported in the current year if Company S uses only FIFO method.

2.

To determine

Compute the amount of cost of goods sold that would have been reported if Company S had used only FIFO method for both years.

3.

To determine

Explain the reason that Company S chose to us LIFO for certain inventories.

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Answer 3

Question

Chapter 7, Problem 7.17E

1.

To determine

Compute the amount of ending inventory that would have been reported in the current year if Company S uses only FIFO method.

2.

To determine

Compute the amount of cost of goods sold that would have been reported if Company S had used only FIFO method for both years.

3.

To determine

Explain the reason that Company S chose to us LIFO for certain inventories.

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Answer 4

Question

Chapter 7, Problem 7.17E

1.

To determine

Compute the amount of ending inventory that would have been reported in the current year if Company S uses only FIFO method.

2.

To determine

Compute the amount of cost of goods sold that would have been reported if Company S had used only FIFO method for both years.

3.

To determine

Explain the reason that Company S chose to us LIFO for certain inventories.

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Answer 5

Chapter 7, Problem 7.17E

1.

To determine

Compute the amount of ending inventory that would have been reported in the current year if Company S uses only FIFO method.

2.

To determine

Compute the amount of cost of goods sold that would have been reported if Company S had used only FIFO method for both years.

3.

To determine

Explain the reason that Company S chose to us LIFO for certain inventories.

Answer 6

Chapter 7, Problem 7.17E

1.

To determine

Compute the amount of ending inventory that would have been reported in the current year if Company S uses only FIFO method.

Answer 7

Chapter 7, Problem 7.17E

1.

To determine

Compute the amount of ending inventory that would have been reported in the current year if Company S uses only FIFO method.

Answer 8

2.

To determine

Compute the amount of cost of goods sold that would have been reported if Company S had used only FIFO method for both years.

Answer 9

2.

To determine

Compute the amount of cost of goods sold that would have been reported if Company S had used only FIFO method for both years.

Answer 10

3.

To determine

Explain the reason that Company S chose to us LIFO for certain inventories.

Answer 11

3.

To determine

Explain the reason that Company S chose to us LIFO for certain inventories.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 7 - Why is inventory an important item to both...Ch. 7 - Prob. 2Q Ch. 7 - Prob. 3Q Ch. 7 - Prob. 4Q Ch. 7 - Prob. 5Q Ch. 7 - The chapter discussed tour inventory costing...Ch. 7 - Prob. 7Q Ch. 7 - Contrast the effects of LIFO versus FIFO on...Ch. 7 - Contrast the income statement effect of LIFO...Ch. 7 - Prob. 10Q

Compute the amount of ending inventory that would have been reported in the current year if Company S uses only FIFO method.

Solution Summary: The author explains that Company S's ending inventory would have been 43,112,000 if it had used only FIFO method, and the cost of goods sold would be 529,813,000.

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Compute the amount of ending inventory that would have been reported in the current year if Company S uses only FIFO method.

Compute the amount of cost of goods sold that would have been reported if Company S had used only FIFO method for both years.

Explain the reason that Company S chose to us LIFO for certain inventories.

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Chapter 7 Solutions