What is LIFO inventory liquidation? Why is it important to disclose the effects of a LIFO inventory liquidation
A LIFO liquidation means that some of the inventory items included in inventory under the LIFO method have been sold, i.e., the company sold more units of merchandise than it purchased during the year. If the units sold in the LIFO liquidation had been carried in inventory at older, lower prices, these lower prices will have been assigned to cost of goods sold. Thus, income will be higher than it would have been if the company had purchased enough units at current prices to maintain its inventory at the lower prices. If the effects of this unexpected LIFO liquidation are material, the information may be relevant to some of the users of the financial statements.
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At the end of the first year of operations, the balance sheet of West Palm Beach Industries had the following balances: Accounts Receivable, $5,000; Accounts Payable, $6,000; Inventory, $3,000; and Unexpired Insurance, $2,000 . The corporation reported net income of $79,000 for the year, including depreciation expense of $5,000, and uses the indirect method of computing net cash flow from
operating activities. Based on this information, net cash flow from operating activities is: a. $82,000 b. $78,000 c. $80,000 d. $77,000
Liquidity ratios attempt to measure the adequacy of a family's net worth
Indicate whether the statement is true or false.
Excessive in-process inventory is often caused by:
A) Schedule slippage. B) Over-ordering supplies. C) Lack of available resources. D) Too much labor.
Answer the following statements true (T) or false (F)
1) Predictive analytics is the science of using customer data to predict past consumption behavior. 2) In the context of Customer Relationship Management (CRM), the purpose of business is to attain mutually beneficial relationships only between the service providers and suppliers. 3) A Customer Relationship Management System (CRMS) keeps track of customer requirements including past purchase history and preferences. 4) Service operations are, by definition, dependent on customer resources which usually are homogeneous. 5) For SC&O management, the concept of meeting customer expectations is associated with quality.