LIFO to FIFO Change.
At year end, Utica Corporation announced that it would change its inventory valuation method from last-in, first-out (LIFO) to first-in, first-out (FIFO). The company also disclosed that the inventory valuation policy change would have a "positive impact on gross profit of $10.10 million." Presented below is Utica's originally reported (using LIFO) financial results for the year.
 

(in thousands)	2019
Net sales	$365,232
Gross profit	$63,049
Income from operations	$17,340

 

Answer the below questions regarding the financial effects of this policy change on the company's income statement and balance sheet.
Note: Round each entry to two decimal points and enter decreases as negative amounts.
A LIFO-to-FIFO policy change is executed by making an adjustment for the difference in inventory and cost of goods sold that is retroactive or proactive? Answer 1 RetroactiveProactive

 

The change to cost of sales on the income statement is: $Answer 2

 

million
The change to ending inventory on the balance sheet is: $Answer 3

 

million
Assume that Utica Corporation is switching from LIFO to FIFO for income tax purposes. The revised net sales, gross profit, and income for operations are as follows:
Note: Round each entry to two decimal points.
 

 

(in thousands)	2019
Net sales	Answer 4
Gross profit	Answer 5
Income from operations	Answer 6

Thus, the company's income from operations will Answer 7 IncreaseDecrease

 

by Answer 8 % *Note: Round percent to two decimal points (i.e. show 14.445% as 14.45%).

Thus, in 2019, the year of the policy change, the company's cash flow from operations will: Answer 9 IncreaseDecrease