b$.$ Accrued interest expense on notes payable for the year.

c$.$ Accrued income taxes at the end of December are $$19,000.$

Complete this question by entering your answers in the tabs below.

Requirement

General

General

Journal

Ledger

Trial Balance

Income

Statement

Balance Sheet

Analysis

Using the information from the requirements above, complete the 'Analysis'.

Analyze the following for Displays Incorporated:

$($a$)$ Suppose Displays Incorporated decided to maintain its internal records using FIFO but to use LIFO for external reporting. Assuming the ending balance of inventory under LIFO would have been $$87,000,$ calculate the LIFO reserve.

reserve is:

$($b$)$ Assume the $$66,000$ beginning balance of inventory comes from the base year with a cost index of $1\mathrm{.}00.$ The cost index at the end of $2024$ of $1\mathrm{.}20.$ Calculate the amount the company would report for inventory using dollar$-$value LIFO.

Ending inventory using dollar$-$value LIFO:

$($c$)$ Indicate whether each of the amounts below would be higher or lower when reporting inventory using LIFO $($or dollar$-$value LIFO$)$ instead of FIFO in periods of rising inventory costs and stable inventory quantities.

$\backslash$table$[[1.$ Inventory turnover ratio,Higher under LIFO$],[2.$ Average days in inventory,Lower under LIFO$],[3.$ Gross profit ratio,Lower under LIFO$]]$

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