On January 1, 2021, Displays Incorporated had the following account balances:

Accounts		Debit			Credit
Cash	$	30,000
Accounts receivable		27,000
Supplies		33,000
Inventory		64,000
Land		235,000
Accounts payable				$	34,000
Notes payable (5%, due next year)					28,000
Common stock					194,000
Retained earnings					133,000
Totals	$	389,000		$	389,000

From January 1 to December 31, the following summary transactions occurred:

1. Purchased inventory on account for $338,000.
2. Sold inventory on account for $610,000. The cost of the inventory sold was $318,000.
3. Received $572,000 from customers on accounts receivable.
4. Paid freight on inventory received, $32,000.
5. Paid $328,000 to inventory suppliers on accounts payable of $334,000. The difference reflects purchase discounts of $6,000.
6. Paid rent for the current year, $50,000. The payment was recorded to Rent Expense.
7. Paid salaries for the current year, $158,000. The payment was recorded to Salaries Expense.

Year-end adjusting entries:

1. Supplies on hand at the end of the year are $5,000.
2. Accrued interest expense on notes payable for the year.
3. Accrued income taxes at the end of December are $26,000.

Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare an income statement for the period ended January 31, 2021. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing Displays Incorporated Income Statement For the year ended December 31, 2021 Gross profit 0 0 Total operating expenses Operating income 0 0 $ 0 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare a classified balance sheet as of January 31, 2021. Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing Displays Incorporated Balance Sheet December 31, 2021 Assets Liabilities Current Assets: Current Liabilities: Total Current Assets 0 0 Total Liabilities Stockholders' Equity Noncurrent Assets: 0 Total Stockholders' Equity Total Liabilities & Stockholders' Equity Total Assets $ 0 $ 0 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Using the information from the requirements above, complete the 'Analysis'. (Calculate the ratios to the nearest 1 decimal place.) 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 $94,000, calculate the LIFO reserve. LIFO reserve is: (b) Assume Displays Incorporated $64,000 beginning balance of inventory comes from the base year with a cost index of 1.00. The cost index at the end of 2021 of 1.1. 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. 1. Inventory turnover ratio 2. Average days in inventory 3. Gross profit ratio Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare an income statement for the period ended January 31, 2021. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing Displays Incorporated Income Statement For the year ended December 31, 2021 Gross profit 0 0 Total operating expenses Operating income 0 0 $ 0 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare a classified balance sheet as of January 31, 2021. Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing Displays Incorporated Balance Sheet December 31, 2021 Assets Liabilities Current Assets: Current Liabilities: Total Current Assets 0 0 Total Liabilities Stockholders' Equity Noncurrent Assets: 0 Total Stockholders' Equity Total Liabilities & Stockholders' Equity Total Assets $ 0 $ 0 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Using the information from the requirements above, complete the 'Analysis'. (Calculate the ratios to the nearest 1 decimal place.) 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 $94,000, calculate the LIFO reserve. LIFO reserve is: (b) Assume Displays Incorporated $64,000 beginning balance of inventory comes from the base year with a cost index of 1.00. The cost index at the end of 2021 of 1.1. 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. 1. Inventory turnover ratio 2. Average days in inventory 3. Gross profit ratio