Cat Incorporated manufactures machinery and engines for the construction, agriculture, and forestry industries. It follows U.S. GAAP

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Cat Incorporated manufactures machinery and engines for the construction, agriculture, and forestry industries. It follows U.S. GAAP and reports its results in millions of U.S. dollars ($). For the year ended December 31, 2013, it reported LIFO inventories of $7,204 million, compared to $6,351 million as of December 31, 2012. Cat’s cost of goods sold for 2013 was $32,626 million. Cat reports in the notes to its 2013 financial statements that inventories would have been $2,617 million higher as of December 31, 2013, had it used the FIFO cost-flow assumption, and $2,403 million higher as of December 31, 2012. Compute Cat’s cost of goods sold for 2013 if the firm had used FIFO instead of LIFO.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...
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Financial Accounting An Introduction to Concepts, Methods and Uses

ISBN: 978-1133591023

14th edition

Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis

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