1.

Using the information below -- what was Bala Industries Cash Flow from Financing for the year ending 6/30/2011?

Increase in inventories $28

Purchased treasury stock $22

Purchased property & equipment $17

Net Income $334

Decrease in accrued income taxes $49

Depreciation & amortization $119

Decrease in accounts payable $17

Increase in accounts receivable $26

Increase in Long-term debt $101

2.

The difference between FIFO and LIFO is FIFO refers to the practice of firms, when making sales, assuming that the inventory that came in last (at a higher price) is being sold first. LIFO implies that a firm is selling the lower cost, older inventory first, leaving the higher cost, newer inventory on the balance sheet.