Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the inventories disclosure note in the 2014 financ

The inventories disclosure note in the 2014 financial statements for SUPERVALU Inc., one of the...

60.1K

Verified Solution

Question

Accounting

The inventories disclosure note in the 2014 financial statements for SUPERVALU Inc., one of the largest grocery chains in the United States, included the following: During fiscal 2014, 2013 and 2012, inventory quantities in certain LIFO layers were reduced. These reductions resulted in a liquidation of LIFO inventory quantities carried at lower costs prevailing in prior years as compared with the cost of fiscal 2014, 2013 and 2012 purchases. As a result, Cost of sales decreased by $28, $20 and $23 in fiscal 2014, 2013 and 2012, respectively. All inventories are stated at the lower of cost or current market values. Cost for inventories at the majority of our operations is determined on a last-in, first-out (LIFO) basis."

Required: The disclosure note indicates an inventory liquidation during 2014, 2013, and 2012. By how much did net income in 2014 increase due to the liquidation? Assume an income tax of 30%. (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Operations Management
1.2K views

How to best way to explain Job Requirement Matrices for HR/director position

Biology
1.2K views

How is light energy trapped by plants and used by the chloroplast membrane to generate ATP...

Biology
1.2K views

What is the key difference between parapatric and sympratic speciation? In circumstances where a genus forms...

Biology
1.2K views

Bacterial cultures and medical devices that are transported need to be frozen choose the correct...

Physics
1.2K views

1 A hollow conducting sphere has inner radius 5 cm and outer radius 8 cm...

Geometry
1.2K views

23 Part A 0 A function g z is obtained by shifting the graph of...

Basic Math
1.2K views

Table Nike and Reebok Advertising Game Use Table Nike and Reebok Advertising Game The sneaker...

Accounting
1.2K views

Presented below is a list of accounts of the XYZ Company at the close...

Accounting
1.2K views

Question 1 Subsequent to acquisition date the goodwill acquired through a business combination was considered...

Accounting
1.2K views

A differential analysis: a. can be used to compare an alternative to the status quo...

Accounting
1.2K views

Shamrock Company sells goods to Bridgeport Company during 2017. It offers Bridgeport the following rebates...

Accounting
1.2K views

in the product/Service information window , the -------- field list the default ledger posting account...