Question
Inchworm, Inc. 2018 2017 2016 Cost of goods sold $39,697 $36,260 $28,144 Inventory $14,529 $10,218 $8,694 LIFO reserve $2,029 $1,734 $2,439 Net Income $6,047 $654
| Inchworm, Inc. | 2018 | 2017 | 2016 |
|
|
|
|
|
| Cost of goods sold | $39,697 | $36,260 | $28,144 |
| Inventory | $14,529 | $10,218 | $8,694 |
| LIFO reserve | $2,029 | $1,734 | $2,439 |
| Net Income | $6,047 | $654 | $67 |
| Marginal tax rate | 30% | 30% | 30% |
Inchworm Inc. uses LIFO for inventory purposes. If you restate their financial statements to reflect FIFO instead, what would be ending inventory on the 2018 Balance Sheet?
| A. | $14,086
| |
| B. | $16,558
| |
| C. | $13,291
| |
| D. | $17,431
| |
| E. | $15,150
|
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The Internal Auditing Handbook
Authors: K. H. Spencer Pickett
2nd Edition
0470848634, 978-0470848630
