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AIS industries, Inc.'s accounting policy for inventories is as follows: 1. INVENTORY VALUATION Inventories are stated at the lower of cost or market. For a

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AIS industries, Inc.'s accounting policy for inventories is as follows: 1. INVENTORY VALUATION Inventories are stated at the lower of cost or market. For a portion of the Company's inventory, cost is determined using the last-in, first-out ("LIFO") method. For approximately 36% and 47% of the Company's inventories at September 30, 2013 and 2012, respectively, the LIFO method is used value the Company's inventories. The first-in, first-out ("FIFO") method is used to value the remainder of the Company's inventories. LIFO reserve was $6,522 and $8,237 in fiscal 2013 and 2012, respectively. Below is a footnote extracted from their 2013 10-K filing (in thousands): 2. Inventories Inventories at September 30 consist of Raw materials and supplies Work-in-process Finished goods Total inventories 2013 5,906 $ 7,049 5,385 18,3405 2012 3,662 8,861 4,064 16,587 Inventories at September 30 consist of Raw materials and supplies Work-it-process Furnished goods Total inventories 2013 5,906 7,449 3.IN 18.3405 2012 3.662 8.861 4.064 16,587 S Consolidated Statements of Operations (Amounts in thousands, except per share data) Net sales Cost of goods sold Gross margin Selling, general and administrative expenses Amortization of intangible assets (Gain) on disposal of operating assets Operating income Interest income Interest expense Foreign currency exchange (gain) loss, net Other income, net Income from continuing operations before income tax provision Income tax provision Income from continuing operations Income from discontinued operations, net of tax Net income Years Ended September 30, 2013 2012 5 116.001$ 102.900 87.986 81,094 28.015 21.806 12.262 9.906 2.076 2.879 189) 13.766 9,021 (24) 342 471 (16) (421) (575) 134546 9,168 4,083 2,561 9,758 6,307 476 10,234 6548 Answer the following questions as of September 30, 2013. Do not use decimals (round your answer) unless otherwise stated. 1. (5 points) What is the reported book value of inventory reported by Als on their balance sheet? 18340 2. (5 points) What is the book value of inventory if the firm had used FIFO? 26577 3. (5 points) What is the cost of goods sold if the firm had used FIFO? 4. (5 points) Assuming a federal tax rate of 35%, did AIS pay more or less taxes in 2013 compared to what it would have paid it they had not used LIFO as a cost flow assumption for some of their (421) 13,846 4.088 Foreign currency Other income, net Income from continuing operations before income tax provision Income tax provision Income from continuing operations Income from discontinued operations, net of tax Net income (575) 9.168 2.861 6,307 241 9,755 476 10,234 6.548 Answer the following questions as of September 30, 2013. Do not use decimals (round your answer) unless otherwise stated. 1. (5 points) What is the reported book value of inventory reported by AIS on their balance sheet? 18340 2. (5 points) What is the book value of inventory if the firm had used FIFO? 26577 3. (5 points) What is the cost of goods sold if the firm had used FIFO? 4. (5 points) Assuming a federal tax rate of 35%, did AIS pay more or less taxes in 2013 compared to what it would have paid if they had not used LIFO as a cost flow assumption for some of their inventories? By how much (enter amount only, no sign)? 5. (5 points) Assume AIS decides to follow IFRS under which LIFO method is not allowed. Assuming a federal tax rate of 35%, what is your estimate of the total tax costs associated with switching from LIFO to FIFO (enter amount only, no sigo)? 6. (5 points)Make the appropriate adjustment(s) necessary to calculate AIS's inventory turnover ratio such that it is reflective of the true economics of AIS's business (round your answer to two decimals only) NOTE: [Inventory turnover - COGS / Avg. Inventory] AIS industries, Inc.'s accounting policy for inventories is as follows: 1. INVENTORY VALUATION Inventories are stated at the lower of cost or market. For a portion of the Company's inventory, cost is determined using the last-in, first-out ("LIFO") method. For approximately 36% and 47% of the Company's inventories at September 30, 2013 and 2012, respectively, the LIFO method is used value the Company's inventories. The first-in, first-out ("FIFO") method is used to value the remainder of the Company's inventories. LIFO reserve was $6,522 and $8,237 in fiscal 2013 and 2012, respectively. Below is a footnote extracted from their 2013 10-K filing (in thousands): 2. Inventories Inventories at September 30 consist of Raw materials and supplies Work-in-process Finished goods Total inventories 2013 5,906 $ 7,049 5,385 18,3405 2012 3,662 8,861 4,064 16,587 Inventories at September 30 consist of Raw materials and supplies Work-it-process Furnished goods Total inventories 2013 5,906 7,449 3.IN 18.3405 2012 3.662 8.861 4.064 16,587 S Consolidated Statements of Operations (Amounts in thousands, except per share data) Net sales Cost of goods sold Gross margin Selling, general and administrative expenses Amortization of intangible assets (Gain) on disposal of operating assets Operating income Interest income Interest expense Foreign currency exchange (gain) loss, net Other income, net Income from continuing operations before income tax provision Income tax provision Income from continuing operations Income from discontinued operations, net of tax Net income Years Ended September 30, 2013 2012 5 116.001$ 102.900 87.986 81,094 28.015 21.806 12.262 9.906 2.076 2.879 189) 13.766 9,021 (24) 342 471 (16) (421) (575) 134546 9,168 4,083 2,561 9,758 6,307 476 10,234 6548 Answer the following questions as of September 30, 2013. Do not use decimals (round your answer) unless otherwise stated. 1. (5 points) What is the reported book value of inventory reported by Als on their balance sheet? 18340 2. (5 points) What is the book value of inventory if the firm had used FIFO? 26577 3. (5 points) What is the cost of goods sold if the firm had used FIFO? 4. (5 points) Assuming a federal tax rate of 35%, did AIS pay more or less taxes in 2013 compared to what it would have paid it they had not used LIFO as a cost flow assumption for some of their (421) 13,846 4.088 Foreign currency Other income, net Income from continuing operations before income tax provision Income tax provision Income from continuing operations Income from discontinued operations, net of tax Net income (575) 9.168 2.861 6,307 241 9,755 476 10,234 6.548 Answer the following questions as of September 30, 2013. Do not use decimals (round your answer) unless otherwise stated. 1. (5 points) What is the reported book value of inventory reported by AIS on their balance sheet? 18340 2. (5 points) What is the book value of inventory if the firm had used FIFO? 26577 3. (5 points) What is the cost of goods sold if the firm had used FIFO? 4. (5 points) Assuming a federal tax rate of 35%, did AIS pay more or less taxes in 2013 compared to what it would have paid if they had not used LIFO as a cost flow assumption for some of their inventories? By how much (enter amount only, no sign)? 5. (5 points) Assume AIS decides to follow IFRS under which LIFO method is not allowed. Assuming a federal tax rate of 35%, what is your estimate of the total tax costs associated with switching from LIFO to FIFO (enter amount only, no sigo)? 6. (5 points)Make the appropriate adjustment(s) necessary to calculate AIS's inventory turnover ratio such that it is reflective of the true economics of AIS's business (round your answer to two decimals only) NOTE: [Inventory turnover - COGS / Avg. Inventory]

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