LIFO Reserve: Restating Financial Statements.The following information is taken from the annual report of the Walgreens Boots Alliance, Inc.:(in millions)20152014Cost of goods sold$ 80,964$ 59,267Net income before tax5,7554,001Ending inventory9,1226,520Inventory reserve2,9442,744 Walgreens uses LIFO to value its inventory. Restate the company’s financial results for 2015 assuming the use of the FIFO method. Assume an effective tax rate of 30%.Enter answers in millions. 2015Cost of goods sold AnswerNet income before tax AnswerEnding inventory Answer

SOLUTION- FIFO METHOD- IT ASSUME THAT THE OLDEST PRODUCTS IN A COMPANY'S INVENTORY HAVE BEEN SOLD…

Answered: LIFO Reserve: Restating Financial…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 80.6C

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LIFO Reserve: Restating Financial Statements.
The following information is taken from the annual report of the Walgreens Boots Alliance, Inc.:

(in millions)	2015	2014
Cost of goods sold	$ 80,964	$ 59,267
Net income before tax	5,755	4,001
Ending inventory	9,122	6,520
Inventory reserve	2,944	2,744

Walgreens uses LIFO to value its inventory. Restate the company’s financial results for 2015 assuming the use of the FIFO method. Assume an effective tax rate of 30%.

Enter answers in millions.

		2015
Cost of goods sold		Answer
Net income before tax		Answer
Ending inventory		Answer

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