2019 2020

Ending Inventory: LIFO 120000 150000 Net Income: LIFO basis 175000 190000 Effective Tax Rate 30% 40%

LIFO Reserve 130000 280000

in LIFO Reserve 50000 150000

question:

1 Compute 2020 Equity if FIFO had been employed - assuming LIFO equity is $500,000.

2 Compute 2020 inventory days on hand for both LIFO and FIFO if COGS is 3,000,000 (time permitting)