In its December 2016 10-K, LyondellBasell Industries reported the following info
ID: 2342540 • Letter: I
Question
In its December 2016 10-K, LyondellBasell Industries reported the following information ($ millions).
Cost of
Goods Sold
LIFO
Reserve
Increase in
LIFO Reserve
Total
Assets
Net
Income
$27,682
$4,364
$1,054
$981
$28,997
$4,392
Reformulate the account balance for the following financial statement items assuming the company used FIFO instead of LIFO for its inventory costing method. The company has a 35% tax rate.
$Answer million
$Answer million
$Answer million
$Answer million
Cost of
Goods Sold
InventoriesLIFO
Reserve
Increase in
LIFO Reserve
Total
Assets
Net
Income
$27,682
$4,364
$1,054
$981
$28,997
$4,392
Explanation / Answer
Part - (a) FIFO Inventory = $(4,364+1,054) = $5,418 million Part - (b) Total assets = $(28,997+1,054) = 30,051 million Part - (c) Cost of goods sold = $(27,682-981) = $26,701 million Part - (d) Net Income = $4,392+[981*(1-35%)] = $5,030 million