Using the attached financial data related to Dow Chemical, convert the data from LIFO to FIFO and compute the following for 2019:
Assume a tax rate of 30%
Show your supporting computations in good form
Inventory under FIFO _____________
COGS under FIFO _____________
Net Income-FIFO ____________
Change in cash flow- 2019 _________
Cumulative tax savings __________
Inventory turnover ratio-2019 ____________
Days of inventory on hand ______________
GP margin -2019 _______________
Current ratio-2019 _______________
Table of Contents The Dow Chemical Company and Subsidiaries Consolidated Balance Sheets (In millions, except share amounts) At Dec 31 2019 Assets 2018 S 2,367 s 2,724 100) 21 4,844 2,716 6,214 571 5,646 3.389 6.899 712 19,900 39,370 16,733 1,404 2.588 1.011 3,320 2.646 360 5.003 6,326 54.910 33,914 20.996 53.984 32.566 21,418 9,846 4.225 Current Assets Cush and cash equivalents (variable interest entities restricted - 2019: $37: 2018: $71) Marketable securities Accounts and notes receivable: Trade inet of allowance for doubtful receivables - 2019: S45: 2018: 542) Other Inventories Other current assets Assets of discontinued operations - current Total current assets Investments Investment in non consolidated affiliates Other investments (investments carried at fair value - 2019: S1.584: 2018: 51.699) Noncurrent receivables Total investments Property Property Less accumulated depreciation Net property (variable interest entities restricted - 2019: $330, 2018: $683) Other Assets Goodwill Other intangible assets (net of accumulated amortization - 2019: S3.886, 2018: $3.379) Operating lease right-of-use assets Deferred income tax assets Deferred charges and other assets Total other assets Total Assets Liabilities and Equity Current Liabilities Noues payable Long-term debt due within one year Accounts payable: Trade Other Operating lease liabilities - current Income taxes payable Accrued and other current liabilities Liabilities of discontinued operations - current Total current liabilities Long-Tenn Debt (variable interest entities nonrecourse - 2019: S34; 2018: 575) Other Noncurrent Liabilities Deferred income tax liabilities Pension and other postretirement benefits - noncurrent Asbestos-related liabilities - noncurrent Operating lease liabilities - noncurrent Other noncurrent obligations Total other noncurrent liabilities Stockholder's Equity Common stock (authorized and issued 100 shares of $0.01 par value cach) 8,796 3,759 2,072 2.213 818 17,658 60,390 S 1.779 735 s 16,585 83.699 298 586 S 435 338 3,889 2,064 421 4,456 2.479 522 2.233 557 2.931 10,150 4,488 15.547 19.253 15.975 347 S01 8.926 1.142 10.083 1,6160 1,739 6,174 4.709 15.278 19,403 Table of Contents 2019 NOTE 11 - INVENTORIES The following table provides a breakdown of inventories: Inventories at Dec 31 In millions Finished goods Work in process Raw materials Supplies Totat Adjustment of inventories to a LIFO basis Total inventories Is 3,505 $ 1,122 628 845 6.14ets 2018 4.313 1,335 674 826 7.148 (249) 6.899 IS 114 6.214 $ Inventories valued on a LIFO basis represented 32 percent of the total inventories at December 31, 2019 and 34 percent of the total inventories at December 31, 2018 NOTE 12- PROPERTY The following table provides a breakdown of property Property at Dec 31 In millions Land and land improvements Buildings Machinery and equipment Other property Construction in progress Total property Estimated Useful Lives (Years) 0-25 s 5-50 3-25 3-50 2019 2.177 S 4.742 40.651 5.354 1,986 54,910 S 2018 2,059 4.745 40,250 5.084 1.846 S 53.984 In millions Depreciation expense Capitalized interest 2017 S 2019 2.156 S 80 IS 2018 2,174 S 88 ls S 1,955 240 NOTE 13 - NONCONSOLIDATED AFFILIATES The Company's investments in companies accounted for using the equity method ("nonconsolidated affiliates") and dividends received from nonconsolidated afliliates are shown in the following tables: Investments in Nonconsolidated Affiliates at Dec 31 In millions 2019/ Investment in nonconsolidated affiliates 2018/ S Other noncurrent obligations 1,404 S 3,320 Net investment in nonconsolidated affiliates (80) S 1. The carrying amount of the Company's investments in nonconsolidated affiliates at December 31, 2015, was S51 million less than its share of the investees' net assets. (839 million less at 1.324 $ 3,320 December 31, 2018). exclusive of additional differences relating to EQUATE Petrochemical Company K.S.C.C. C'EQUATE"). Sadara and AgroFresh Solutions Inc. ("AFSI"), which are discussed separately in the disclosures that follow Dividends Received from Nonconsolidated Affiliates In millions Dividends from nonconsolidated affiliates 2019 2018 S 1,020 S 2017 654 663 $ 1. Includes a non-cash dividend of $7 million Table of Contents The Dow Chemical Company and Subsidiaries Consolidated Statements of Income 2017 Is 2018 49,604 S 41,074 800 1,782 469 221 43,730 36,350 803 (In millions) For the years ended Dec 31, Net sales Cost of sales Research and development expenses Selling, general and administrative expenses Amortization of intangibles Restructuring, goodwill impairment and asset related charges - net Integration and separation costs Equity in eamings (losses) of nonconsolidated affiliates Sundry income (expense) - net Interest income Interest expense and amortization of debt discount Income (loss) from continuing operations before income taxes Provision for income taxes on continuing operations Income (loss) from continuing operations, net of tax Income from discontinued operations, net of tax Net income (loss) Net income attributable to noncontrolling interests Net income (loss) available for The Dow Chemical Company common stockholder See Notes to the Confidered Financial Statements. 2019 42.951 S 36,657 765 1,585 419 3.219 1,039 (94) 573 81 952 (1.125) 470 (1.595) 445 1.795 400 2.739 798 394 (154) 1.179 555 96 82 66 914 237 1,063 3,749 809 2,940 1.835 4.775 1,524 (1.287) 1.882 (1.150) 87 595 134 S (1.237) 130 465 4.641 S 69 Table of Contents The Dow Chemical Company and Subsidiaries Consolidated Balance Sheets (In millions, except share amounts) At Dec 31 2019 Assets 2018 S 2,367 s 2,724 100) 21 4,844 2,716 6,214 571 5,646 3.389 6.899 712 19,900 39,370 16,733 1,404 2.588 1.011 3,320 2.646 360 5.003 6,326 54.910 33,914 20.996 53.984 32.566 21,418 9,846 4.225 Current Assets Cush and cash equivalents (variable interest entities restricted - 2019: $37: 2018: $71) Marketable securities Accounts and notes receivable: Trade inet of allowance for doubtful receivables - 2019: S45: 2018: 542) Other Inventories Other current assets Assets of discontinued operations - current Total current assets Investments Investment in non consolidated affiliates Other investments (investments carried at fair value - 2019: S1.584: 2018: 51.699) Noncurrent receivables Total investments Property Property Less accumulated depreciation Net property (variable interest entities restricted - 2019: $330, 2018: $683) Other Assets Goodwill Other intangible assets (net of accumulated amortization - 2019: S3.886, 2018: $3.379) Operating lease right-of-use assets Deferred income tax assets Deferred charges and other assets Total other assets Total Assets Liabilities and Equity Current Liabilities Noues payable Long-term debt due within one year Accounts payable: Trade Other Operating lease liabilities - current Income taxes payable Accrued and other current liabilities Liabilities of discontinued operations - current Total current liabilities Long-Tenn Debt (variable interest entities nonrecourse - 2019: S34; 2018: 575) Other Noncurrent Liabilities Deferred income tax liabilities Pension and other postretirement benefits - noncurrent Asbestos-related liabilities - noncurrent Operating lease liabilities - noncurrent Other noncurrent obligations Total other noncurrent liabilities Stockholder's Equity Common stock (authorized and issued 100 shares of $0.01 par value cach) 8,796 3,759 2,072 2.213 818 17,658 60,390 S 1.779 735 s 16,585 83.699 298 586 S 435 338 3,889 2,064 421 4,456 2.479 522 2.233 557 2.931 10,150 4,488 15.547 19.253 15.975 347 S01 8.926 1.142 10.083 1,6160 1,739 6,174 4.709 15.278 19,403 Table of Contents 2019 NOTE 11 - INVENTORIES The following table provides a breakdown of inventories: Inventories at Dec 31 In millions Finished goods Work in process Raw materials Supplies Totat Adjustment of inventories to a LIFO basis Total inventories Is 3,505 $ 1,122 628 845 6.14ets 2018 4.313 1,335 674 826 7.148 (249) 6.899 IS 114 6.214 $ Inventories valued on a LIFO basis represented 32 percent of the total inventories at December 31, 2019 and 34 percent of the total inventories at December 31, 2018 NOTE 12- PROPERTY The following table provides a breakdown of property Property at Dec 31 In millions Land and land improvements Buildings Machinery and equipment Other property Construction in progress Total property Estimated Useful Lives (Years) 0-25 s 5-50 3-25 3-50 2019 2.177 S 4.742 40.651 5.354 1,986 54,910 S 2018 2,059 4.745 40,250 5.084 1.846 S 53.984 In millions Depreciation expense Capitalized interest 2017 S 2019 2.156 S 80 IS 2018 2,174 S 88 ls S 1,955 240 NOTE 13 - NONCONSOLIDATED AFFILIATES The Company's investments in companies accounted for using the equity method ("nonconsolidated affiliates") and dividends received from nonconsolidated afliliates are shown in the following tables: Investments in Nonconsolidated Affiliates at Dec 31 In millions 2019/ Investment in nonconsolidated affiliates 2018/ S Other noncurrent obligations 1,404 S 3,320 Net investment in nonconsolidated affiliates (80) S 1. The carrying amount of the Company's investments in nonconsolidated affiliates at December 31, 2015, was S51 million less than its share of the investees' net assets. (839 million less at 1.324 $ 3,320 December 31, 2018). exclusive of additional differences relating to EQUATE Petrochemical Company K.S.C.C. C'EQUATE"). Sadara and AgroFresh Solutions Inc. ("AFSI"), which are discussed separately in the disclosures that follow Dividends Received from Nonconsolidated Affiliates In millions Dividends from nonconsolidated affiliates 2019 2018 S 1,020 S 2017 654 663 $ 1. Includes a non-cash dividend of $7 million Table of Contents The Dow Chemical Company and Subsidiaries Consolidated Statements of Income 2017 Is 2018 49,604 S 41,074 800 1,782 469 221 43,730 36,350 803 (In millions) For the years ended Dec 31, Net sales Cost of sales Research and development expenses Selling, general and administrative expenses Amortization of intangibles Restructuring, goodwill impairment and asset related charges - net Integration and separation costs Equity in eamings (losses) of nonconsolidated affiliates Sundry income (expense) - net Interest income Interest expense and amortization of debt discount Income (loss) from continuing operations before income taxes Provision for income taxes on continuing operations Income (loss) from continuing operations, net of tax Income from discontinued operations, net of tax Net income (loss) Net income attributable to noncontrolling interests Net income (loss) available for The Dow Chemical Company common stockholder See Notes to the Confidered Financial Statements. 2019 42.951 S 36,657 765 1,585 419 3.219 1,039 (94) 573 81 952 (1.125) 470 (1.595) 445 1.795 400 2.739 798 394 (154) 1.179 555 96 82 66 914 237 1,063 3,749 809 2,940 1.835 4.775 1,524 (1.287) 1.882 (1.150) 87 595 134 S (1.237) 130 465 4.641 S 69
