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
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 |
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