Question

Question 2 Tries remaining: 1 Marked out of 4.00 P Flag question Reformulating Balance Sheet and Income Statement Items for LIFO to FIFO In its December 2016 10-K, LyondellBasell Industries reported the following information (5 millions). Cost of LIFO Increase in Total Net Goods Sold Inventories Reserve LIFO Reserve Assets Income $25,460 $4,142 $832 759 526,775 $4,170 Support 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 35% tax rate. Account Balance a. Inventories b. Total assets c. Cost of goods sold $ d. Net Income Check

Answer 1

solution . Account Balance . a. Inventories фиати b. Total Assets $21,607 C. cost of Goods sold $.24150 ...d. Net Income $4,863 Explanations a FIFO Inventory z Inventories + LIFO Reserve = $hill2 + $832 = $1,974 b. FIFO Total Assels : Total Assets + LIFO Reserve = $.26,775+$832 =- $27,607

C. cost of goods sold .= cost of goods Increase in FIFO I sold : LIFO reserve ? $25,460 - $759 ..=$24.701. 5. Nez Income. Net it Increase in (1.-tax rate) FIFO : Income LIFO Reserve 2 $41170 +[$7591-0.35)] =$hito + $493 = $ 663 . .
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