Question: Excerpts from the annual report of Lands End follow

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


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

Required:
a. What would ending inventory have been at Year 9 and Year 8 had FIFO been used?
b. What would net income for the year ended Year 9 have been had FIFO been used?
c. Discuss the usefulness of LIFO to FIFO restatements for analysispurposes.
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  • CreatedJanuary 22, 2015
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