Excerpts from the annual report of Lands’ End follow ($ in thousands): Note 1: If the first-in, first-out (FIFO) method of accounting for inventory had been used, inventory would have been approximately $26.9 million and $25.1 million higher than reported at Year 9 and Year 8, respectively.Please see attached and solve What would. Ending. Inventory have been at Year9 and Year8 had FIFO been used?What would net income for the year ended Year 9 have been had FIFO been used?Discuss the usefulness of LIFO to FIFO. Restatements for. Analysis purposes. Excerpts from the annual report of Lands' End follow ($ in thousands):Year 9Year 8Inventory...$219,686Cost of sales ..... 754,661Net income31,185Tax rate.37%$241,154675,13864,15037%Lands' EndNote 1: If the first-in, first-out (FIFO) method of accounting for inventory had beenused, inventory would have been approximately $26.9 million and $25.1 million higherthan reported at Year 9 and Year 8, respectively.PROBLEM 4-3Analysis of Inventoryand Related Adjustments

Name: Excerpts from the annual report of Lands’ End follow ($ in thousands):
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Excerpts from the annual report of Lands’ End follow ($ in thousands): Note 1: If the first-in, first-out (FIFO) method of accounting for inventory had been used, inventory would have been approximately $26.9 million and $25.1 million higher than rep

Answered: Excerpts from the annual report of…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Excerpts from the annual report of Lands’ End follow ($ in thousands):

Note 1: If the first-in, first-out (FIFO) method of accounting for inventory had been used, inventory would have been approximately $26.9 million and $25.1 million higher than reported at Year 9 and Year 8, respectively.

Please see attached and solve

What would. Ending. Inventory have been at Year9 and Year8 had FIFO been used?
What would net income for the year ended Year 9 have been had FIFO been used?
Discuss the usefulness of LIFO to FIFO. Restatements for. Analysis purposes.

Excerpts from the annual report of Lands' End follow ($ in thousands):
Year 9
Year 8
Inventory...
$219,686
Cost of sales ..... 754,661
Net income
31,185
Tax rate.
37%
$241,154
675,138
64,150
37%
Lands' End
Note 1: If the first-in, first-out (FIFO) method of accounting for inventory had been
used, inventory would have been approximately $26.9 million and $25.1 million higher
than reported at Year 9 and Year 8, respectively.
PROBLEM 4-3
Analysis of Inventory
and Related Adjustments

Expert Solution

Step 1 Given

As per the given information:

$Inventory in Year 9 - $ 26.9 Inventory in Year 8 - $ 25.1$

Annual report:

$\begin{matrix} Year 9 & Year 8 \\ Inventory & $ 219, 686 & $ 241, 154 \\ Cost of sales & 754, 661 & 675, 138 \\ Net income & 31, 185 & 64, 150 \\ Tax rate & 37 % & 37 % \end{matrix}$

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.