Solution-Indicate whether each of the following financial

Indicate whether each of the following financial measurement

Reference no: EM13994232

Ford Motor Company uses LIFO to account for all of its domestic inventories. A note to the company's financial statements indicated that:
If the FIFO method had been used instead of the LIFO method, inventories would have been higher by over a billion dollars.

a. Indicate whether each of the following financial measurements would have been higher, lower, or unaffected had Ford Motor Company used FIFO instead of LIFO. Explain the reasoning behind your answers.

1. Gross profit rate.
2. Reported net income.
3. Current ratio (Ford's current ratio is greater than 1 to 1).
4. Inventory turnover rate.
5. Accounts receivable turnover rate.
6. Cash payments made to suppliers.
7. Net cash flow from operations (Ford's operating cash flows are positive).

b. Provide your own assessment of whether using LIFO has made Ford Motor Company more or less (1) liquid and (2) well-off. Defend your answers.

Reference no: EM13994232

Questions Cloud

Determine the appropriate means of reporting each situation : In a memo to the audit manager, Mitch Riley, explain your reasoning. Include any necessary journal entries and drafts of appropriate disclosure notes.

What did you like or dislike about the dance : In the dances you chose, please relate the class assignments given to you in class such as unison phrases, storytelling, manipulation, partner work, repetition etc... to the work performed on stage. What did you like or dislike about the dance

Implement methods in bayesian time series modelling : Implement methods in Bayesian time series modelling - Write up methods and results sections in a format that is suitable for publication,

How fast must the muons be traveling relative to earth : Scientists have observed the average lifetime of these rapidly moving particles to be about 10 times longer than what it would be for muons in the laboratory reference frame. Approximately how fast must the muons be traveling relative to Earth?

Indicate whether each of the following financial measurement : Ford Motor Company uses LIFO to account for all of its domestic inventories. A note to the company's financial statements indicated that: If the FIFO method had been used instead of the LIFO method, inventories would have been higher by over a billio..

Should anything be added to the disclosure note itself : Explain whether Valleck should report a liability in addition to the note. Why or why not? For full disclosure, should anything be added to the disclosure note itself?

Describe the sdlc stages and the steps : A detailed explanation of the security measures you would incorporate into each stage of the SDLC in order to ensure security best practices are followed all along the life cycle of the project

What is the mass of the car in kg : At a college homecoming 18 students lifted a sports car. Each student exerted 400N of upward force on the car. What is the mass of the car in kg? What is its weight in lbs?

What is the cost to heat the garage for six hours : On a cold winter day, the outside temperature is -5.0 °C. What is the cost to heat the garage for six hours at these temperatures if the cost of electricity is $ 0.11/kWh?

User Account

All Pages

Indicate whether each of the following financial measurement

Reference no: EM13994232

Reference no: EM13994232

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT