FSA: Assets 财务报告分析：资产－相关习题6 财务, statements, border

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Selected information from Leeward Company’s financial statements for the year ended December 31, 2001, is as follows (in $):

Cash	3,000,000		Accounts Payable	1,800,000
Accounts Receivable	3,400,000		Deferred Tax Liability	1,200,000
Inventory	6,300,000		Long-term Debt	12,500,000
Property, Plant & Eq.	15,200,000		Common Stock	2,000,000
Total Assets	27,900,000		Retained Earnings	10,400,000
LIFO Reserve Jan. 1	1,600,000		Total Liab. & Equity	27,900,000
LIFO Reserve Dec. 31	2,100,000

Leeward uses the last in, first out (LIFO) inventory cost flow assumption. The tax rate is 40 percent. If Leeward changed from LIFO to first in, first out (FIFO), the total debt-to-total equity ratio will:

A)	increase from 1.25 to 1.32.
B)	decrease from 1.25 to 1.16.
C)	decrease from 1.25 to 1.20.
D)	remain unchanged at 1.25.

C
Total debt to total equity under LIFO is ($1,800,000 + $1,200,000 + $12,500,000) / ($2,000,000 + $10,400,000) =) 1.25. If Leeward uses FIFO, on the asset side, Inventory will increase by the amount of the ending LIFO reserve ($2,100,000). On the liabilities and equity side, Deferred Tax Liability will increase by the ending LIFO reserve times the tax rate ($2,100,000 * 0.4 =) $840,000. Retained Earnings will increase by the ending LIFO reserve times (1 – tax rate), which is (($2,100,000) (1 – 0.4) =) $1,260,000. Leeward’s total debt to total equity ratio under FIFO will be ($1,800,000 + $1,200,000 + $840,000 + $12,500,000) / (($2,000,000 + $10,400,000 + $1,260,000) =) 1.20.

fionzheng

d

xu7431

c

secret1616

c

wangxud

ting

yuyi1981

1

terryquinn

[em02]

盘子

看

路西菲尔

C

slava_xu

t