In the following information from the 2015 annual reports of Focal Point Industries all figures have been rounded to millions of dollars.
Changes in assets and liabilities:
REQUIRED:
1 Explain what the amount "adjustment to LIFO" represents. What effects has this "adjustment" had on Focal
Point Industries' net earnings in 2014 and 2015?
2 What method of determining cash flows from operating activities has Focal Point Industries used in preparing its statement of cash flows? Explain your answer.
3 From 2014 to 2015, what change in the inventory balance increase or decrease occurred in each year as a result of operating activities? What was the effect on the company's cash flow each year as a result of the inventory change?

Question

In the following information from the 2015 annual reports of Focal Point Industries all figures have been rounded to millions of dollars.
Changes in assets and liabilities:
REQUIRED:
   1 Explain what the amount "adjustment to LIFO" represents. What effects has this "adjustment" had on Focal
Point Industries' net earnings in 2014 and 2015?
2 What method of determining cash flows from operating activities has Focal Point Industries used in preparing its statement of cash flows? Explain your answer.
3 From 2014 to 2015, what change in the inventory balance increase or decrease occurred in each year as a result of operating activities? What was the effect on the company's cash flow each year as a result of the inventory change?

Quizplus · Accepted Answer

The Answer of In the following information from the 2015 annual reports of Focal Point Industries all figures have been rounded to millions of dollars.
Changes in assets and liabilities:
REQUIRED:
   1 Explain what the amount "adjustment to LIFO" represents. What effects has this "adjustment" had on Focal
Point Industries' net earnings in 2014 and 2015?
2 What method of determining cash flows from operating activities has Focal Point Industries used in preparing its statement of cash flows? Explain your answer.
3 From 2014 to 2015, what change in the inventory balance increase or decrease occurred in each year as a result of operating activities? What was the effect on the company's cash flow each year as a result of the inventory change?

In the Following Information from the 2015 Annual Reports of Focal