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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1246 |
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Also, by using FIFO, there will be higher reported assets and equity, higher taxes which lower net income. Lower net income leads to lower statement of cash flow. In general, the business will appear better off than with LIFO.
On the other hand, in a trend of falling prices, using LIFO results in lower reported COGS and thus higher income, higher statement of cash flow, higher retained earnings, higher taxes which lower net income, higher reported assets and equity...
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Enter the 2000 and 2001 ending balances in the T-account. Use information from the financial statements to recreate the activity that took place in the account during fiscal 2001 and answer the following questions. Note that the income statement line item ?cost of goods and occupancy costs' portion was $57,300 (which according to footnote 5 to the financial statements is the rental expense for operating leases in fiscal 2001; the corresponding figure is $47,100 in fiscal 2000)
* number in thousands
Inventory
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