Tableau Dashboard Activity 5-1: Inventory Cost Flow Methods

The owners of Lindy Corporation is asking for your help in making a determination as to how the three inventory methods FIFO, LIFO, and Weighted-Average, will impact the companys financial statements.

To highlight how each of these methods impacts the financial statements three separate Tableau visualizations labeled Presentation 1, Presentation 2, and Presentation 3 have been provided to you below. You can see each presentation by selecting them from the top panel within the Tableau Dashboard. To assist the owner of Lindy Corporation, use the visualizations to answer the following questions. You are to assume that the company is currently operating in an environment of rising prices.

Required: 1. Which presentation represents the impact on the balance sheet if the company elects to use the FIFO method? 2. Which presentation represents the impact on the balance sheet if the company elects to use the Weighted-Average method? 3. Which presentation represents the impact on the balance sheet if the company elects to use the LIFO method? 4. If the owners of Lindys main concern is the reduction of income taxes, which method are they likely to select? 5. If the Lindy owners main concern is increasing net income, which method are they likely to select?

Presentation 1 Presentation 2 Presentation 3 ** Balance Sheet - Presentation 1 200K Cash $70,000 150K Common Stock $70,000 Dollar Value Inventory $40,000 100K 50K PP&E $90,000 Retained Earnings $90,000 OK Assets Liabilities & Equity # tableau {