Exercise 80

In 2019, Fischer Corporation changed its method of inventory pricing from LIFO to FIFO. Net income computed on a LIFO as compared to a FIFO basis for the four years involved is: (Ignore income taxes.)

		LIFO		FIFO
2016		$62,560		$68,560
2017		67,600		70,480
2018		69,600		73,120
2019		74,000		74,160

Indicate the net income that would be shown on comparative financial statements issued at 12/31/19 for each of the four years, assuming that the company changed to the FIFO method in 2019.

		Net Income
2016		$
2017		$
2018		$
2019		$

Assume that the company had switched from the average cost method to the FIFO method with net income on an average cost basis for the four years as follows: 2016, $80,400; 2017, $86,120; 2018, $90,300; and 2019, $93,600. Indicate the net income that would be shown on comparative financial statements issued at 12/31/19 for each of the four years under these conditions.

		Net Income
2016		$
2017		$
2018		$
2019		$

Assuming that the company switched from the FIFO to the LIFO method, what would be the net income reported on comparative financial statements issued at 12/31/19 for 2016, 2017, and 2018?

		Net Income
2016		$
2017		$
2018		$