The Information Below Is Provided for Sea Company

question 9

Essay

The information below is provided for Sea Company:
Required :
a.Compute Sea Company’s 2016 ending inventory using dollar-value LIFO.
b.Explain why a company would want to use dollar-value LIFO.

---

Definitions:

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, usually resulting in a net profit or loss.

Retained Earnings

The portion of net earnings not distributed to shareholders as dividends but retained by the company to be reinvested in its core business or to pay debt.

Accounts Payable

Money owed by a company to its creditors or suppliers for goods and services that have been received but not yet paid for.

Debit Entry

An accounting entry that increases an asset or expense account, or decreases a liability, equity, or revenue account.