п»їDow Chemical Accounting Homework
Dow Chemical Firm is a manufacturer and dealer of products applied primarily as raw materials in the manufacture of customer product or service. Its products include chemicals, advanced elements, agro-sciences and plastics businesses. Attached would be the excerpts coming from Dow Chemical's Annual survey for 2012. Depending on the information inside the financial transactions and footnotes, please, solution the inquiries below. Presume a duty rate of 35%.
1 . Which price flow presumptions does Dow Chemical value to value it is inventories?
Inventories are explained at the reduce of price or market. The method of determining price for each part varies among LIFO, FIFO, and average cost.
Precisely what is the value of arrays that Dow Chemical ideals at LIFO basis by December 23, 2012?
. 29 2. 8476 million= 2485 million
2 . Guess that Dow Chemical substance had utilized first-in, first-out (FIFO) like a cost stream assumption for every their Stocks. Would the book worth of Inventories at December 31, 2012 be above, lower than, or maybe the same as the quantity currently noted? If distinct, by how much?
Inventories would be higher with FIFO. Would be higher by LIFO book value= 842 million.
Might Total stockholders' equity in December 23, 2012 be higher than, less than, or the just like the amount at present recorded? In the event that different, by how much?
Stockholders' equity will be higher with FIFO. Would be higher by simply 547 million. Difference in cumulative pre-tax income FIFO вЂ“ total pre-tax profits LIFO (LIFO Reserve=Cum. pre-tax income FIFO - Sperm. pre-tax cash flow LIFO) moments tax charge => 842 MM*(1-tax rate)= 842 5.. 65 sama dengan 547. a few MM
Could Income before income taxes in fiscal yr 2012 be higher than, lower than, or the identical to the amount currently recorded? If perhaps different, by how much?
Pretax Income can be lower with FIFO by 263 (change in LIFO reserve)
What amount would the Dow Chemical include reported while cost of items sold in fiscal...