Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Quick Danstoon 2 Not yet answered Marked out of 5.00 P Flag question Analys Data A Solver Curren Accou Days' Restating Inventory Values Using the

image text in transcribed
Quick Danstoon 2 Not yet answered Marked out of 5.00 P Flag question Analys Data A Solver Curren Accou Days' Restating Inventory Values Using the LIFO Inventory Reserve. Chemical Boost, Inc. is a manufacturer of chemical and derivative products. Presented below is selected information from Chemical Boost's recent annual report, Chemical Boost, Inc. Condensed Balance Sheet (5 millions) 2015 2014 2015 2014 Assets Labilities & Shareholders' Equity Inventory $16.250 515,500 Liabilities 563,175 $61,300 Other current assets 33,900 34.750 Capital stock 18,650 17.950 Noncurrent assets 50,750 47.250 Retained earnings 19,075 18.250 Total 5.100,900 597,500 Total $100.900 597,500 Cash Opera Op Ca Solver Long-t Long-t Chemical Boost, Inc. Condensed Statement of Earnings (5 millions) 2015 2014 Revenues $ 101,425 $ 104.750 Cost of goods sold 69,125 70,600 Gross proft 32.300 34,150 Other expenses 29.400 31,063 Income taxes 750 1.550 Net earnings 32.150 51538 Interes The footnotes to the company's financial statements revealed that Chemical Boost, Inc. values most of its inventory using UFO, The LIFO reserve was approximately 51,500 million and $750 million, respectively, at year end 2015 and 2014. Assume an effective tax rate of 26% 1. If Chemical Boost, Inc. had used FIFO instead of LIFO to value entory, what value would have been reported for 2015 for the following accounts? Enter answers in millions. Round to the nearest million, if needed. a. Ending inventory s million million b. Cost of goods sold s million c. Net income before s Lanalysis tment... Inventory for invento managem Use then convert in gross prof Using the these firm for each fi the other d. Retained earnings million 3_module doc 2. How much additional income tax would the company have paid if it had used FIFO instead of LIFO to value its inventory? Round to the nearest millions million

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Exploring Strategic Change

Authors: Julia Balogun, Veronica Hope Hailey, Stafanie Gustafsson

4th Edition

0273778919, 9780273778912

More Books

Students also viewed these Accounting questions

Question

Define intercultural conflict

Answered: 1 week ago