Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
LIFO Inventory Advantages Jane Yoakam, president of Estefan Co., recently read an article that claimed that at least 100 of the country's largest 500 companies were either adopting or considering adopting the last-in, first-out (LIFO) method for valuing inventories. The article stated that the firms were switching to LIFO to
(1) Neutralize the effect of inflation in their financial statements,
(2) Eliminate inventory profits, and
(3) Reduce income taxes. Ms. Yoakam wonders if the switch would benefit her company.Estefan currently uses the first-in, first-out (FIFO) method of inventory valuation in its periodic inventory system. The company has a high inventory turnover rate, and inventories represent a significant proportion of the assets. Ms. Yoakam has been told that the LIFO system is more costly to operate and will provide little benefit to companies with high turnover. She intends to use the inventory method that is best for the Company in the long run rather than selecting a method just because it is the current fad.
(a) Explain to Ms. Yoakam what "inventory profits" are and how the LIFO method of inventory valuation could reduce them.
(b) Explain to Ms. Yoakam the conditions that must exist for Estefan Co. to receive tax benefits from a switch to the LIFO method.
drug benefits and post retirement liabilities delphi companyreduced its other post reitrement benefits by approx 500
ace co. prepared an aging of its accounts receivable at december 31 2012 and determined that the net realizable value
the following three seperate situations require adjusting journal entries to prepare financial statements as of april
What is the difference between revenues and receipts?
Was NGS more profitable in 2016 or 2015? Use the gross profit percentage, return on equity, and fixed asset turnover ratio to help in making a decision. Was NGS more liquid in 2016 or 2015? Use the current ratio to help in making a decision.
Prepare a 350-word memo discussing the factors to consider when choosing accounting software. Analyze why each factor is important and the risks of not considering each factor.
the information results from a nonstatistical sampling routine used for a confirmation of accounts receivable. what is
Assume that two companies that operate walk-in clinics both had the same December year end, but one was based in Aspen, Colorado, a winter resort, while the other operated in Cape Cod, Massachusetts, a summer resort. Would this lead to problems in..
1 donald a cash basis dentist had 7000 of uncollectible accounts receivable in 2013. because donald had always been a
can someone point me where to find how to do this? ive tried the book and web... suppose today is january 1 2012. using
company is contemplating investing in a new piece of manufacturing machinery. the amount to be invested is 150000. the
bronze corporation has the following information month budgeted sales may 46000 june 50000 july 52000 august 48000 the
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd