1.Please Complete Solution With Details 2.Final Answer Clearly Mentioned 3.Do not give solution in image format Converting FIFO Inventory to Dollar-Value LIFO and Preparing Year-End Adjustments to the LIFO ReserveStetson Industries has been using FIFO for all internal and external reporting purposes. At the start of Year 5, the company adopted dollar-value LIFO for external financial statement and income tax purposes. Its derivedinternal price indices are: Year 4 is 1.00; Year 5 is 1.10; Year 6 is 1.15; and Year 7 is 1.20. The FIFO inventory records show the following for its single inventory pool.FIFO Basis$600,000699,600855,600864,000YearYear 4 Ending InventoryYear 5 Ending InventoryYear 6 Ending InventoryYear 7 Ending Inventory b. Prepare the December 31 year-end journal entry for Year 5, Year 6, and Year 7, to convert inventory from FIFO to LIFO.DateDec. 31, Year 5 InventoryAllowance to Reduce FIFO Inventory to LIFO BasisTo adjust LIFO ReserveDec. 31, Year 6 InventoryAccount NameAllowance to Reduce FIFO Inventory to LIFO BasisTo adjust LIFO ReserveDec. 31, Year 7 InventoryAllowance to Reduce FIFO Inventory to LIFO BasisTo adjust LIFO ReserveDr.69,960041,750043,2000Cr.0x69,960 *0x41,750 *0x43,200 *

LIFO (Last in first out) This method is based on the idea that the most recent purchases in your…

Converting FIFO Inventory to Dollar-Value LIFO and Preparing Year-End Adjustments to the LIFO Reserve Stetson Industries has been using FIFO for all internal and external reporting purposes. At the start of Year 5, the company adopted dollar-value LIFO for external financial statement and income tax purposes. Its derived internal price indices are: Year 4 is 1.00; Year 5 is 1.10; Year 6 is 1.15; and Year 7 is 1.20. The FIFO inventory records show the following for its single inventory pool. Year Year 4 Ending Inventory Year 5 Ending Inventory Year 6 Ending Inventory Year 7 Ending Inventory FIFO Basis $600,000 699,500 855,600 864,000

Converting FIFO Inventory to Dollar-Value LIFO and Preparing Year-End Adjustments to the LIFO Reserve Stetson Industries has been using FIFO for all internal and external reporting purposes. At the start of Year 5, the company adopted dollar-value LIFO for external financial statement and income tax purposes. Its derived internal price indices are: Year 4 is 1.00; Year 5 is 1.10; Year 6 is 1.15; and Year 7 is 1.20. The FIFO inventory records show the following for its single inventory pool. Year Year 4 Ending Inventory Year 5 Ending Inventory Year 6 Ending Inventory Year 7 Ending Inventory FIFO Basis $600,000 699,500 855,600 864,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 39E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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When the double-extension approach to the dollar-value LIFO inventory cost flow method is used, the inventory layer added in the current year is multiplied by an index number. How would the following be used in the calculation of this index number?
Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for Cuneo Company above. Required: 1. Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 3 by expressing each line item for Year 3 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.)
Refer to the information for Cuneo Company above.Required:1. Prepare a common-size income statement for Year 2 by expressing each line item for Year2 as a percentage of that same line item from Year 1. (Note: Round percentages to thenearest tenth of a percent.)2. Prepare a common-size income statement for Year 3 by expressing each line item for Year3 as a percentage of that same line item from Year 1. (Note: Round percentages to thenearest tenth of a percent.)
Required: Analyse Delima’s financial statement. Include the following ratios for 2020 and discuss your findings (2019 values are provided for comparison): Current ratio (year 2019 – 92:1) Inventory turnover (year 2019 – 7.2 times) Debt to assets ratio (year 2019 – 82%) Return on assets (year 2019 – 10.8%) Profit margin (year 2019 – 10.0%)
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Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established for tax purposes. The quantity weights are based on year-ending inventory levels. Unit Price ($) Ending Inventory Ending Product Beginning A 500 0.15 0.19 B 50 1.40 1.80 100 4.50 4.20 D 40 12.00 13.40 Use the beginning-of-the-year price per unit as the base-period price and develop a weighted aggregate index for the total inventory value at the end of the year. (Round your answer to the nearest integer.) I = What type of weighted aggregate price index must be developed for the LIFO inventory valuation? O Laspeyres Index O Paasche index
Not Graded please assist with the calculations with image provided. Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the2020 annual report as noted below, calculate the financial ratios for 2020 and 2019 indicatedusing the EXCEL template provided:10. Average collection period11. Inventory turnover12. Days’ sales in inventory13. Debt-to-equity ratio14. Times-interest-earned ratio15. Operating-cash-flow-to-capital-expenditures ratio16. Earnings per share17. Price-earnings ratio18. Dividend yield19. Dividend payout ratioTotal assets 2020 = $30,806.7Total stockholders’ equity 2020 = $8,349.5Total current liabilities 2020 = $7,491.5Accounts receivable 2020 = $1,615.1Inventory 2020 = $1,426.3Year-end closing stock price May 2020 = $58.80Year-end closing stock price May 2019 = $53.56
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1. A general price level statement of financial position is prepared and presented in terms of a. The general purchasing power of the peso at the latest end of the reporting period b. The general purchasing power of the peso in the base period c. The average general purchasing power of the peso d. The general purchasing power of the peso at the time the financial statements are issued 2. For purposes of adjusting financial statements for changes in the general price level, monetary items consist of a. Assets and liabilities whose amounts are fixed by contract or otherwise in terms of pesos b. Assets and liabilities classified as current c. Cash and cash equivalents plus all receivables d. Cash, other assets expected to be converted into cash and current liabilities 3. When an entity prepares financial statements in a current cost basis, how is the cost of goods sold computed? Number of units sold times average…
Selected ratios of Company X are shown below: Inventory turnover Days' sales uncollected Days' purchases in accounts payable Total asset turnover Equity ratio Times interest earned 2021 5.3 32.4 21.0 2.6 0.8 N.A. 2020 7.1 18.3 20.0 2.5 0.8 N.A. Using the financial ratios provided, analyse the performance of Company X in 2021 compared to the previous year.
Hsieh Company adopted the dollar-value LIFO method on January 1, 2020 (using internal price indexes and multiplepools). The following data are available for inventory pool A for the 2 years following adoption of LIFO:At Base- At CurrentInventory Year Cost Year Cost1/1/2020 $334,000 $334,00012/31/2020 361,000 375,44012/31/2021 412,000 449,080