change in accounting principle answer v2

change in accounting principle answer v2 - Version 2 Name...

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Version 2 Name and # 05 and '06 profit and loss 15 06 balance sheet 10 Retained earnings roll forward 10 Inventory COGS LIFO FIFO Change LIFO FIFO Change 1/1/2005 $- $- $- $- $- $- 12/31/2005 $175 $125 $(50) $575 $625 $50 12/31/2006 $200 $300 $100 $1,200 $1,050 $(150) 12/31/2007 $400 $600 $200 $1,600 $1,500 $(100) Adjusted Original Adjusted Original 2007 2006 2006 Change 2005 2005 Change Sales $4,000 $3,500 $3,500 $- $4,000 $4,000 $- COGS 1,500 1,050 1,200 (150) 625 575 50 1,300 900 900 - 900 900 - Income before tax 1,200 1,550 1,400 150 2,475 2,525 (50) Income tax 480 620 560 60 990 1,010 (20) Net income $720 $930 $840 $90 $1,485 $1,515 $(30) Adjusted Original 2007 2006 2006 Change Cash $6,000 $5,500 $5,500 - Inventory 600 300 200 100 Total assets $6,600 $5,800 $5,700 $100 Income tax liability 792 600 560 40 APIC 10 10 10 R.E. 5,798 5,190 5,130 60 $6,600 $5,800 $5,700 $100 Roll forward of 2006 R.E. 2006 as originally stated
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change in accounting principle answer v2 - Version 2 Name...

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