REVIEW CH 5 ASSIGNMENT REVISED (SP 2024)

.docx

School

University of Florida *

*We aren’t endorsed by this school

Course

1543

Subject

Chemistry

Date

May 2, 2024

Type

docx

Pages

Uploaded by BaronLion3699 on coursehero.com

REVIEW: CH 5 ASSIGNMENT REVISED All work must be submitted in Excel This document contains 3 problems to help you prepare for the midterm. The Answers will be posted on Canvas after the due date. Grading: 50% template development; 50% correctly using the template Problem #1 LIFO TO FIFO: Most inventories owned by Company & Deere and its United States equipment subsidiaries are valued at cost, on the “last-in, first-out” (LIFO) basis. Remaining inventories are generally valued at the lower of cost, on the “first-in, first-out” (FIFO) basis, or market. The value of gross inventories on the LIFO basis represented 66 percent and 64 percent of worldwide gross inventories at FIFO value on December 31, 2019 and 2020, respectively. If all inventories had been valued on a FIFO basis, estimated inventories by major classification at December 31 in millions of dollars would have been as follows: Inventory Information Account 2019 2020 Raw materials $712 $882 Work-in-process 385 425 Finished machines and parts 2,013 2,263 Total FIFO value 3,110 3,570 Less adjustment to LIFO value -1,040 -1,400 Inventories $2,070 $2,170 What adjustments to the balance sheet and income statement are necessary to convert from LIFO to FIFO for 2020: Assume 21% marginal tax rate. Problem #2 Allowance for Doubtful Accounts

Egghead.com had the following key information related to its income statement and balance sheet on its 2015 and 2016 financial statements: Accounts Receivable Information Account 2016 2015 Accounts Receivable, net 24,079 20,494 Inventories, net 82,712 89,543 Sales 403,841 434,021 Cost of sales 357,373 380,428 From its Accounts Receivable Footnote Company sales made on credit generally have terms of net 30 days. The sales and corresponding trade receivables for inventoried product are recorded upon merchandise shipment. The Company records provisions for doubtful accounts and sales returns and allowances based upon historical experience. Certain advertising and promotional expenditures are reimbursable from suppliers under cooperative advertising and other promotional and market development fund arrangements. Amounts qualifying for reimbursement are recorded as receivables from the suppliers and as a corresponding reduction of net advertising expense in the period the expenditure occurs. Also included in accounts receivable are credit card receivables and amounts due from vendors for returned inventory and other programs. The Company records a provision for uncollectible vendor receivables based upon historical experience. The allowances for doubtful accounts are $2,090 and $2,169 for 2016 and 2015, respectively. Assuming the Marginal Income Tax rate is 21%, what adjustment would be made to the balance sheet and income statement for the allowance for doubtful accounts assuming the prior year was more accurate? Problem #3 Research & Development

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version