Referring to Exhibit 9-14 (7th edition) and related notes,

Assume instead that: a. Toyozas inventories were costed using the LIFO method and that Lincoln Enterprises employed the FIFO method. Provide the adjusting journal entries to restate Toyozas inventories to a FIFO basis, assuming that ending inventories would have been 160 million higher under the FIFO method, and

b. Toyozas purchased goodwill is amortized over 20 years. The current periods amortization expense is 12 million for the year and is included under other operating expenses. Under a U.S. GAAP impairments test, it would have been 20% of that amount.

Required: 1. It requires to re-do the ratio analysis based on the adjusted data, and to explain your calculating result.

2. Suppose you are an analyst for Toyoza Enterprises, based on the information in Appendix 91 and the above ratio analysis (you may assume some other reasonable SWOT conditions), you are required to do WOTS-UP analysis for Toyoza Enterprises.

EXHIBIT 9-14 Year-End Unadjusted Financial Statements and Related Notes Toyoza Enterprises (VThousands) Lincoln Enterprises (SThousands) Income Statements Sales Operating expenses: Cost of sales Selling and administrative Other operating Goodwill amortization Operating income Gains (losses) Interest expenses Income before taxes Income taxes Income after taxes Equity in earnings of unconsolidated 1 ,400,000 $12,000 1,120,000 100,000 114,200 10,044 575 319 10 1,052 Y65,800 28,000 37,800 23,800 14,000 130 922 258 664 116 subsidiaries Net income Balance Sheets Cash Accounts receivable, net Marketable securities Inventory Investments Plant and equipment, net 14,000 $ 780 124,500 510,000 45,000 390,000 150,000 280,600 1,920 1,660 500 1,680 1,000 5,160 continu