Dow Chemicals LIFO to FIFO Calculations & Conversions

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Question Description

Please answer as soon as possible. List all calculations to the 9 questions attached.

Dow Chemicals LIFO to FIFO Calculations & Conversions
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Dow Chemicals LIFO to FIFO Calculations & Conversions
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Dow Chemicals LIFO to FIFO Calculations & Conversions
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Dow Chemicals LIFO to FIFO Calculations & Conversions
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Dow Chemicals LIFO to FIFO Calculations & Conversions
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Dow Chemicals LIFO to FIFO Calculations & Conversions
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Tutor Answer

DrGates
School: University of Maryland

Attached.

Running head: CONVERTING LIFO TO FIFO

Converting LIFO to FIFO
Student’s Name
Institution Affiliation

1

CONVERTING LIFO TO FIFO

2

Converting LIFO to FIFO
1. Inventory Under FIFO
Inventory

LIFO

FIFO

Inventory

$16,992

$16,772

2. COGS under FIFO

LIFO reserve at year end

2017

2016

$216

$(53)

Increase/ decrease in LIFO reserve = $216-(53) = $269

COGS

LIFO

FIFO

$50,414

$50,145

3. Net Income-FIFO = $760
4. Change in cash flow -2017 = $17,262
5. Cumulative tax savings = LIFO reserve * tax rate
= $216*30%
=$64.80

CONVERTING LIFO TO FIFO

3

6. Inventory turnover ratio-2017 = cost of goods sold/ inventories
Inventories = $16992
Cost of goods sold = $50,414
Inventory ratio = 50414/16992
=2.97
7. Days of inventory on hand = Average inventories/ COGs *365
=16992/50414*365
=0.3370*365
=123 days
8. GP-Margin = Gross profit/ net sales
= (62484-50414)/62484
=12070/62484
=0.1932 or 19.32%
9. Current Ratio = current assets/ current liabilities
= 49893/26128
=1.92

CONVERTING LIFO TO FIFO

4


DowDuPont Inc.
Consolidated Statement of Cash Flows
USD $ in millions
2017
Operating activities
Net income
Depreciation and amortization
Provision (credit) for deferred income tax
Earnings of nonconsolidated affiliates less than (in
excess of) dividends received
Net periodic pension benefit cost
Pension contributions
Net gain on sales of assets, businesses and
investments
Net gain on step acquisition of nonconsolidated
affiliates
Restructuring, goodwill impairment and asset related
charges, net
Amortization of Merger-related inventory step-up
Asbestos-related charge
Excess tax benefits from share-based payment
arrangements
Other net loss
Accounts and notes receivable
Proceeds from interests in trade accounts receivable
conduits
Inventories
Accounts payable
Other assets and liabilities, net
Changes in assets and liabilities, net of effects of
acquired and divested companies
Adjustments to reconcile net income to net cash
provided by operating activitie...

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