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Unformatted text preview: and Ending Inventory for both 2005 and 2006 for Nomura Imports for each of the three inventory methods: Weighted average (WAVE), FIFO, and LIFO. WAVE FIFO LIFO Cost of goods sold, 2005 __________ __________ __________ Inventory, December 31, 2005 __________ __________ __________ Cost of goods sold, 2006 __________ __________ __________ Inventory, December 31, 2006 __________ __________ __________ Supporting calculations for a.: b. Assume Nomura Imports uses the LIFO method. What is the LIFO reserve as at December 31, 2006? c. How much could Nomura Imports have saved in taxes in 2005 using the LIFO versus the FIFO method? d. Assume Nomura Imports elects to use the FIFO method. Calculate Nomura Imports inventory turnover ratio and number of days-sales-in-inventory for 2006. Please sign the attendance sheet before you leave!...
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- Spring '08