Problem:
1. The 2012 balance sheet of Matlack Inc., Inc. shows total assets of $13,430,622 thousand, operating assets of $12,166,473 thousand, operating liabilities of $4,370,229 thousand, and shareholders' equity of $7,022,213 thousand. Matlack Inc.' 2012 net operating assets are:
2. In times of falling prices, choosing LIFO over FIFO as an inventory cost method would affect the financial statements as follows:
A) Cost of goods sold will be higher and ending inventory will be lower
B) Cost of goods sold will be lower and ending inventory will be lower
C) Cost of goods sold will be higher and ending inventory will be higher
D) Cost of goods sold will be lower and ending inventory will be higher
Summary of problem:
These short answer questions belong to Finance. The 1st question is about calculation of net operating assets for a company. The 2nd question is about choosing LIFO or FIFO during falling prices.