Question

6. Refer to the financial information for International Technologies. If International Tech had used the FIFO inventory accounting method, International Tech would have reported what dollar amount for inventories on its 2014 balance sheet?

a. $320,393

b. $242,325

c. $195,399

d. $281,359

e. None of the above.

Consolidated Statements of Ops (USD $)
In Thousands	Dec. 27, 2014	Dec. 28, 2013	Dec. 29, 2012
NET SALES	$1,097,788	$929,810	$719,204
Cost of sales	$839,946	$698,771	$542,700
GROSS PROFIT	$257,842	$231,039	$176,504
Selling and administrative expenses	$251,591	$205,797	$171,420
Other operating expense, net	$2,441	$1,334	$184
Facility consolidation expenses	$14,888	$0	$0
Impairment of assets	$3,059	$0	$0
OPERATING INCOME (LOSS)	($14,137)	$23,909	$4,901
Interest expense	$11,615	$10,141	$8,494
Other (income) expense, net	($416)	$70	($748)
Gain on purchase of businesses	($29,997)	$0	$0
Refinancing expenses	$0	$254	$0
INC (LOSS) FROM CONT OPS BEFORE TAXES	$4,660	$13,443	($2,846)
Income tax provision (benefit)	$2,843	($1,558)	($1,083)
INCOME (LOSS) FROM CONTINUING OPS	$1,817	$15,001	($1,763)
Loss from discontinued operations, net of tax	($1,642)	($718)	($740)
Loss on disposal of disc ops, net of tax	($3,961)	$0	$0
NET INCOME (LOSS)	($3,785)	$14,283	($2,503)
Consolidated Balance Sheets	Dec. 27, 2014	Dec. 28, 2013
In Thousands
CURRENT ASSETS
Cash and cash equivalents	$1,064	$689
Receivables, net of allow. of $1,215 and $381, respectively	$136,415	$118,970
Inventories	$281,359	$251,691
Prepaid expenses	$16,119	$15,201
Deferred income taxes	$34,349	$17,879
TOTAL CURRENT ASSETS	$469,306	$404,430
PROPERTY, PLANT AND EQUIPMENT, NET	$276,720	$201,110
OTHER ASSETS	$66,350	$66,398
TOTAL ASSETS	$812,376	$671,938
CURRENT LIABILITIES	$0	$0
Accounts payable	$59,692	$58,533
Accrued expenses	$79,129	$70,745
Current portion of long-term debt	$24,511	$16,818
TOTAL CURRENT LIABILITIES	$163,331	$146,097
LONG-TERM DEBT	$319,167	$274,749
DEFERRED INCOME TAXES	$25,315	$10,994
OTHER LONG-TERM LIABILITIES	$53,525	$49,016
TOTAL LIABILITIES	$561,338	$480,857
From Notes to Financial Statements
Inventories (USD $)
In Thousands
	Dec. 31, 2014	Dec. 31, 2013
Raw materials	$109,752	$86,033
Work-in-process	$53,935	$45,576
Finished goods	$156,365	$156,554
Supplies and other	$340	$319
Valuation to reduce to LIFO (LIFO reserve)	($39,034)	($36,790)
Inventories	$281,359	$251,691

Answer 1

Answer is Option A)

If LIFO reserve would not have been there the Finished goods would have been valued at higher rate.

Hence answer is Option A) as per below working

Inventories value at December 31, 2014

Total inventories Add: LIFO reserve Inventories Value $281,359 $39,034 $320,393