In 2016,Richard's Department Store Changes Its Inventory Method from FIFO

question 109

Multiple Choice

In 2016,Richard's Department Store changes its inventory method from FIFO to LIFO.Richard's uses the simplified LIFO method.Richard's year-end inventory under FIFO is as follows: 2015 - $300,000;2016 - $350,000.The 2015 price index is 110% and the 2016 index is 120%.The 2016 ending inventory after adopting the LIFO method is

• A)$350,000.
• B)$320,833.
• C)$381,818.
• D)$322,727.

Recognize the tools and standards used for financial statement analysis including comparative statements and common-size analysis.

Calculate and interpret return on total assets, return on ordinary shareholders' equity, basic earnings per share, price earnings ratio, and dividend yield.

Understand the purpose and components of general-purpose financial statements.

Recognize the importance and methods of analyzing a company's performance and financial condition over time.

---

Definitions:

Persisting Positive Charge

A lasting electrical charge characterized by an excess of protons, often seen in certain particles or materials.

Negative Charge

An electrical charge that results from an excess of electrons in an atom or molecule, leading to an attraction to positively charged particles.

Action Potential

A transient electrical charge that travels along a neuron's axon, enabling neural communication.

Glial Cells

Non-neuronal cells in the central nervous system that support, nourish, and protect neurons.