Question

	Financial Position as of
		12/31/16		12/31/17		12/31/18
Cash		$ 89,100		$130,100		$154,500
Accounts receivable		79,700		101,600		125,400
Inventory		125,400		139,000		172,500
Other assets		162,800		171,400		198,400
Total assets		$457,000		$542,100		$650,800
Accounts payable		$ 39,700		$ 59,600		$ 79,700
Other liabilities		78,200		85,700		109,400
Common stock		198,400		198,400		198,400
Retained earnings		140,700		198,400		263,300
Total liabilities and equity		$457,000		$542,100		$650,800

			Income for Years Ended
			12/31/17		12/31/18
Sales revenue			$1,062,600		$1,490,760
Less:	Cost of goods sold		498,300		746,000
	Other expenses		206,600		299,400
			704,900		1,045,400
Income before income taxes			357,700		445,360
	Income taxes (40%)		143,080		178,144
Net income			$214,620		$ 267,216

Other data:

1.		Inventory on hand at December 31, 2016, consisted of 41,800 units valued at $3 each.
2.		Sales (all units sold at the same price in a given year):
			2017-151,800 units @ $7 each				2018-181,800 units @ $8.20 each
3.		Purchases (all units purchased at the same price in given year):
			2017-151,800 units @ $3.80 each				2018-181,800 units @ $4.80 each
4.		Income taxes at the effective rate of 40% are paid on December 31 each year.

1. Name the account(s) presented in the financial statements that would have different amounts for 2018 if LIFO rather than FIFO had been used, and state the new amount for each account that is named.

Answer 1

Account Name	LIFO amount
Inventory	125,400
Retained Earnings	140,192
Less : Cost of goods sold	872,640
Total expenses	1,172,040
Income before income taxes	318,720
Income taxes 40%	127,488
Net income	191,232