Reference no: EM131867201
Question - Ford Motor (automotive) AND Caterillar (heavy equipment) both use the LIFO inventory valuation method. Caterpillar uses it for 70% of its inventories and Ford for 28% of its inventories. Data from the 2009 10-K filings of these two companies follow (in millions of U.S. dollars):
Ford Caterillar
Cost of goods sold... 100,016 23,886
LIFO inventory, beginning 6988 8,781
LIFO inventory, ending 5450 6,360
LIFO reserve, beginning 850 3,183
LIFO reserve, ending 798 3,003
1. For both companies, as of the end of 2009, the existence of a LIFO reserve demonstrates that LIFO inventory is less than it would have been if FIFO had been used. For both companies, compute the ratio of LIFO inventory/FIFO inventory for 2009 ending inventory. Comment on the resulting numbers.
2. For Caterpillar, compute what 2009 cost of goods sold would have been if FIFO had been used.
3. What might have caused Caterpillar's LIFO reserve to be so much larger than Ford's?
4. If a company uses FIFO, can you use financial statement data to compute what its cost of goods sold would be using LIFO? Explain.
Differentiate parametric from nonparametric tests
: Nursing Research - Differentiate parametric from nonparametric tests in terms of assumptions, outcomes, and desirability.
|
Create a case study of a hypothetical child
: Create a case study of a hypothetical child using what you have learned about the disability/disorder in researching for your overview section.
|
Differentiate experimental designs from quasi-experimental
: Nursing Research - Differentiate experimental designs from quasi-experimental designs.
|
Discuss the tax consequences of contributing cash
: Discuss the tax consequences of contributing cash, property and/or services to the new entity. Discuss how income and distributions may/will be allocated
|
Compute what cost of goods sold would have been
: Cost of goods sold... 100,016 23,886. For Caterpillar, compute what 2009 cost of goods sold would have been if FIFO had been used
|
What style did the leader exhibit
: What style did the leader exhibit? Describe events pointing out how your selected leader worked by certain principles.
|
Draw the chemical structure of peptide
: Calculate the ratio of the protonated/deprotonated species ([HA]/[[A-]) for N-terminal amine, C-terminal acid, and acidic/basic side chain.
|
We made sure she got the vaccine
: Jane father arrive in school He says "jane cant have chicken pox. We made sure she got the vaccine. What is your best response
|
What is monterey average investment
: Monterey Corporation is considering the purchase of a machine costing $52,000 with a 4-year useful life, what is Monterey's average investment
|