In the following information from the 2014 annual reports of Technic Industries all figures have been rounded to millions of dollars.
REQUIRED:
(1)Explain what the amount "adjustment to LIFO" represents.What effects has this "adjustment" had on Technic Industries' net earnings in 2013 and 2014?
(2)What method of determining cash flows from operating activities has Technic Industries used in preparing its statement of cash flows? Explain your answer.
(3)From 2013 to 2014,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 2014 annual reports of Technic Industries all figures have been rounded to millions of dollars.
   REQUIRED:
(1)Explain what the amount "adjustment to LIFO" represents.What effects has this "adjustment" had on Technic Industries' net earnings in 2013 and 2014?
(2)What method of determining cash flows from operating activities has Technic Industries used in preparing its statement of cash flows? Explain your answer.
(3)From 2013 to 2014,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 2014 annual reports of Technic Industries all figures have been rounded to millions of dollars.
   REQUIRED:
(1)Explain what the amount "adjustment to LIFO" represents.What effects has this "adjustment" had on Technic Industries' net earnings in 2013 and 2014?
(2)What method of determining cash flows from operating activities has Technic Industries used in preparing its statement of cash flows? Explain your answer.
(3)From 2013 to 2014,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 2014 Annual Reports of Technic