Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) "Company is engaged in manufacture and sale of chemicals, plastic materials, agricultural and other specialized services" 10-k

The Dow Chemical Company and Subsidiaries
Consolidated Balance Sheets (In Part)
(In Millions) At December 31, 2004 2003
Assets    
Current Assets $3,108 $2,392
Cash and cash equivalents 84 42
Marketable securities and interest-bearing deposits    
Accounts and notes receivable:    
Trade (net of allowance for doubtful receivable-2004:    
136;2003:$118) 4,753 3,574
Other 2,604 2,356
Inventories 4,957 4,050
Deferred income tax assets-current 384 698
Total current assets $15,890 $13,11

Note D-Inventories
Following table gives breakdown of inventories at December 31, 2004 and 2003:

Inventories at December 31
(In Millions) 2004 2003
Finished Goods $2,989 $2,396
Work in Process 889 837
Raw Materials 605 373
Supplies 474 444
Total inventories $4,957 $4,050

Reserves reducing inventories from \first-in, first-out ("FIFO") basis to \last-in, first-out ("LIFO") basis amounted to $807 million ar December 31,2004 and $330 million at December 31, 2003.

Inventories valued at LIFO basis, principally hydrocarbon and U.S. chemicals and plastics product inventories, represented 39 percent of total inventories at December 31, 2004 and 38 percent of total inventories at December 31, 2003.

Reduction of certain inventories resulted in liquidation of some quantities of LIFO inventory, increasing pretax income $154 million in 2004 and $70 million in 2003, and reducing pretax loss $71 million in 2002.

problems

A. Determine the inventory balance at December 31, 2004

B. Compute the inventory balance at Decmber 31, 2004, without reduction for LIFO reserve?

C. Why would liquidation of some quantities of LIFO inventory increase pretax income in 2004 by $154 million?

D. Must all inventory be costed in the same way? describe.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M919863

Have any Question? 


Related Questions in Accounting Basics

Del gato clinic deposits all cash receipts on the day when

Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2015, its Cash account shows a(n) $14,287 debit balance. Del Gato ...

Assignmentexercise 1 treatment of nsf checkthe bank

Assignment Exercise 1 Treatment Of NSF check The bank statement of Stone Supplies included a $300 NSF check that one of Stone's customer had written to pay for services that were provided by Stone. Required a. Show the e ...

Accountingnorthwest fur co started 2016 with 114000 of

Accounting Northwest Fur Co. started 2016 with $114,000 of merchandise inventory on hand. During 2016, $410,000 in merchandise was purchased on account with credit terms of 2/15, n/45. All discounts were taken. Purchases ...

Write a paper about internal controlsassignmentcontent

Write a paper about internal controls Assignment Content Page - Introduction - Definition of internal controls(Books) - Components of internal control system(Books) - Examples of internal controls(Books or research paper ...

1 several years ago courtney borrowed 100000 from the

1) Several years ago, Courtney borrowed $100,000 from the Friendly Local Bank and used it to buy an apartment building. Courtney has not been able to rent any of the apartments in the building and has not made any princi ...

1you have been hired by the cfo of strayer university to

1.You have been hired by the CFO of Strayer University to develop a plan to protect its accounting and financial systems at a reasonable cost. Suggest a high-level plan for the CFO. Provide support for your suggestion. B ...

Accounting and regulatory environmenti need someone to

Accounting and Regulatory Environment. I need someone to write a paper for me on accounting and the regulatory environment. The instructions are below on what it is to include. In the wake of the accounting and finance s ...

Gasbvisit the website of the governmental accounting

G.A.S.B Visit the website of the Governmental Accounting Standards Board (G.A.S.B.) at http://gasb.org. Review the website to learn about the organization, its act ivies, and its goals. Review one or more of the "Plain-L ...

Accountingbulluse the internet to research the annual

Accounting • Use the Internet to research the annual report of at least one merchandising company. Determine which costing method (Last In First Out [LIFO], First In First Out [FIFO], or weighted average cost) that is us ...

On the cash dividends become a liability of a

On the ________, cash dividends become a liability of a corporation. declaration date date of record end of the fiscal year payment date ________ are equity securities in which the investor owns 20% or more, but less tha ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen