Excerpts from the annual report of Lands’ End follow ($ in thousands): Note 1: If the first-in, first-out (FIFO) method of accounting for inventory had been used, inventory would have been approximately $26.9 million and $25.1 million higher than reported at Year 9 and Year 8, respectively.Please see attached and solve What would. Ending. Inventory have been at Year9 and Year8 had FIFO been used?What would net income for the year ended Year 9 have been had FIFO been used?Discuss the usefulness of LIFO to FIFO. Restatements for. Analysis purposes. Excerpts from the annual report of Lands' End follow ($ in thousands):Year 9Year 8Inventory...$219,686Cost of sales ..... 754,661Net income31,185Tax rate.37%$241,154675,13864,15037%Lands' EndNote 1: If the first-in, first-out (FIFO) method of accounting for inventory had beenused, inventory would have been approximately $26.9 million and $25.1 million higherthan reported at Year 9 and Year 8, respectively.PROBLEM 4-3Analysis of Inventoryand Related Adjustments

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Description: Excerpts from the annual report of Lands’ End follow ($ in thousands): Note 1: If the first-in, first-out (FIFO) method of accounting for inventory had been used, inventory would have been approximately $26.9 million and $25.1 million higher than rep

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College Accounting (Book Only): A Career Approach

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ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

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Problem 7E: On December 31, Marchant Company took a physical count of its merchandise inventory. It operates...

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Excerpts from the annual report of Lands’ End follow ($ in thousands):

Note 1: If the first-in, first-out (FIFO) method of accounting for inventory had been used, inventory would have been approximately $26.9 million and $25.1 million higher than reported at Year 9 and Year 8, respectively.

Please see attached and solve

What would. Ending. Inventory have been at Year9 and Year8 had FIFO been used?
What would net income for the year ended Year 9 have been had FIFO been used?
Discuss the usefulness of LIFO to FIFO. Restatements for. Analysis purposes.

Excerpts from the annual report of Lands' End follow ($ in thousands):
Year 9
Year 8
Inventory...
$219,686
Cost of sales ..... 754,661
Net income
31,185
Tax rate.
37%
$241,154
675,138
64,150
37%
Lands' End
Note 1: If the first-in, first-out (FIFO) method of accounting for inventory had been
used, inventory would have been approximately $26.9 million and $25.1 million higher
than reported at Year 9 and Year 8, respectively.
PROBLEM 4-3
Analysis of Inventory
and Related Adjustments

Expert Solution

Step 1 Given

As per the given information:

$Inventory in Year 9 - $ 26.9 Inventory in Year 8 - $ 25.1$

Annual report:

$\begin{matrix} Year 9 & Year 8 \\ Inventory & $ 219, 686 & $ 241, 154 \\ Cost of sales & 754, 661 & 675, 138 \\ Net income & 31, 185 & 64, 150 \\ Tax rate & 37 % & 37 % \end{matrix}$

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