BFIN 367

Financial Reporting & Analysis

Follow the numbers. Find the story.

Connecting the financial statements...

STATUS: GUIDING LAB

Fiscal Controls

Procure (Buy) 10 Units

Cost Outflow: $100

Sales Volume 8 Units

Current Sale Price: $50/unit

LIFO Valuation: $0

Remaining Units (Oldest Kept)

Warehouse Empty

FIFO Valuation: $0

Remaining Units (Newest Kept)

Warehouse Empty

Awaiting Fiscal Year Execution

Follow the Professor's objectives to unlock your financial statements!

Line Item

LIFO Method

FIFO Method

Revenue

- Cost of Goods Sold

Gross Profit

- Taxes (30%)

Net Income

Definition: The cumulative, year-over-year buildup of the difference between inventory valued at FIFO vs LIFO.

FIFO End Inventory: $

- LIFO End Inventory: -$

= Cumulative Reserve: $

Previous Reserve: $

Δ Change in Reserve: $

LIFO COGS: $

- Δ LIFO Reserve: -$

= Converted FIFO COGS: $

Proof: Notice this perfectly matches the FIFO COGS in the Income Statement above!