Q28

Refer to the Xogenic, Inc. financial statement information. What would Xogenic's cost of goods sold be if Xogenic used FIFO? The following (modified slightly for this exam) is from the 2015 Xogenics, Inc. annual report. Consolidated Statement of Earnings (dollars in millions) Year ended December 31 2015 2014 Net Sales $2,344 2,169 Cost of sales 1,673 1,466 Selling, general, and admin. expenses 403348 Other expenses 1580 Other charges (credits), net: Interest expense 14 7 Interest income (3)| (5) Miscellaneous, net 4 (13) Earnings before income taxes 95366 Income taxes 35139 Net earnings 60 227 2015 2014 92 Consolidated Balance Sheet (dollars in millions) At December 31 Current Assets Cash Marketable securities Receivables Inventories Other current assets Total current assets Property, plant, and equipment Accumulated depreciation Intangible assets, net Total assets 51 0 499 252 295 9 851926 1.262 1.163 (636) (556) 214 175 1.691 1,708 22 123 102 190 4151 103 171 296 Current liabilities Notes pavable Accounts payable Accrued liabilities Total current liabilities Long term debt Other long term liabilities Total Liabilities Shareholders' equity Common stock Retained eamings Other equity adjustments Total shareholders' equity 135 556 12 116 424 234 1.099 (198) 1.135 233 1,120 (69) | 1,284 From the Notes to the Consolidated Financial Statements (dollar amounts in millions): Inventories Inventory cost is determined using the last-in, first-out (LIFO) method. The reserve to reduce inventories from a FIFO basis to a LIFO basis amounted to $30.5 at December 31, 2015 and $24.5 at December 31, 2014