The Kroger Co. reported cash income taxes paid of $ 679 million for the year ended February
Question:
a. What is the LIFO reserve for Kroger as of February 1, 2014? February 2, 2013?
b. What is the impact of Krogers decision to use LIFO on its February 1, 2014 balance sheet in terms of the effect on inventory, current assets, and total assets?
c. What is the amount of the LIFO effect for Kroger for the year ended February 1, 2014?
d. What is the impact of Krogers decision to use LIFO on its income statement for the year ended February 1, 2014, in terms of earnings before taxes?
e. What is the impact of Krogers decision to use LIFO on its cash taxes paid for the year ending February 1, 2014, assuming an effective tax rate of 35%?
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella