Compute helio’s ending inventory and net income for 2011

Reference no: EM131408453

The 2011 inventory activity for Helio Brothers, a discount retailer that prepares financial statements under IFRS using the FIFO cost flow assumption, is provided below.

Many of the items in the company's inventory at the end of 2011 were judged to be outdated, and on average the market value of the remaining inventory was estimated at $1.50 per item.

REQUIRED:

a. Compute Helio's ending inventory and net income for 2011.

b. Early in 2012 styles appeared to change, and the average market price of the inventory written down at the end of 2011 rebounded to $2.80 per item. Record the entry made by Helio to recognize the inventory recovery. What entry would Helio record if it used U.S. GAAP instead of IFRS?

Reference no: EM131408453

Questions Cloud

Compose a value proposition for your product or service : As many know, poverty and homelessness are issues that need to be addressed with a lot of seriousness. We have decided to address this problem. By using a STaR (social, technological and resource) analysis, we have been able to come up with a stra..

Explanation of the organizational issues : a) Develop a clear explanation of the organizational issues within the case study. b) Outline a clear direction for the case study analysis that includes all of the elements you plan to include.

Calculate optimum quantities of products slacks : Formulate the linear programming problem, calculate optimum quantities of products slacks and total profit and also conduct sensitivity analysis accordingly using simplest method ?

Debate topics - is technology damaging social interactions : Debate topics: Should teens be charged as adults for violent crimes? Is technology damaging social interactions? Is addiction a choice

Compute helio’s ending inventory and net income for 2011 : Early in 2012 styles appeared to change, and the average market price of the inventory written down at the end of 2011 rebounded to $2.80 per item. Record the entry made by Helio to recognize the inventory recovery. What entry would Helio record i..

Test the independence of age versus length of absence : The personnel director of a large firm has summarized a random sample of last year's absentee reports in the accompanying contingency table. At the 0.01 level of significance, test the independence of age versus length of absence.

Prepare a perceptual map for your chosen product : Prepare a perceptual map for your chosen product/brand and using a minimum of seven competitors, rank each product/brand on the two variables based on how they are positioned in the consumers' minds.Explain why you placed each competitor on its p..

Is being a chippendales dancer honorable work : How could the perennial ethical duties to the self-develop our abilities and talents and do ourselves no harm-be mustered to support the idea that these men should be proud of what they do?

Explain why deere & company might resist adopting ifrs : Why would a potential investor or creditor who is considering investing in Deere be interested in the difference between LIFO and FIFO inventory values?

User Account

All Pages