Question: Hershey ( HSY ) values the majority of U . S . inventories under the LIFO method and its international business using the FIFO method.

Hershey (HSY) values the majority of U.S. inventories under the LIFO method and its international business using the FIFO method. Using the information below from HSY's footnote, what adjustments are needed to convert the 2018 NOA and NOPAT from LIFO to as-if FIFO? Assume the statutory tax rate is 21 percent.

THE HERSHEY COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (amounts in thousands, except

THE HERSHEY COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (amounts in thousands, except share data or if otherwise indicated) 17. SUPPLEMENTAL BALANCE SHEET INFORMATION The components of certain consolidated balance sheet accounts are as follows: December 31, Inventories: Raw materials. Goods in process Finished goods. Inventories at FIFO. Adjustment to LIFO. Total inventories. 2018 2017 $237,086 $224,940 107,139 93,627 618,798 614,945 963,023 933,512 (178,144) (180,676) $784,879 $752,836

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ANSWER To convert Hersheys 2018 NOA and NOPAT from LIFO to asif FIFO we need to make the following a... View full answer

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