In the Following Information from the 2014 Annual Reports of Technic

question 216

Essay

In the following information from the 2014 annual reports of Technic Industries all figures have been rounded to millions of dollars.
REQUIRED:
(1)Explain what the amount "adjustment to LIFO" represents.What effects has this "adjustment" had on Technic Industries' net earnings in 2013 and 2014?
(2)What method of determining cash flows from operating activities has Technic Industries used in preparing its statement of cash flows? Explain your answer.
(3)From 2013 to 2014,what change in the inventory balance (increase or decrease)occurred in each year as a result of operating activities? What was the effect on the company's cash flow each year as a result of the inventory change?

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Definitions:

Systematically Underestimated

Consistently underestimated in a methodical manner, often resulting in inaccurately low assessments or expectations.

Test Bias

The presence of unfair, systemic advantages or disadvantages in a test that affect the performance of certain groups of people.

School Performance

An evaluation of a student's academic achievement in educational settings, often measured by grades and test scores.

Test Bias

The presence of certain elements within a test that systematically disadvantage a particular group of test-takers.