inventory: Under the LIFO method, what amount should Metro report as inventory at January 31, 2004? Question 6 Anders Co. uses the moving-average method to determine the cost of its inventory. During January 2005, Anders recorded the following information pertaining to its inventory: What amount of inventory should Anders report in its January 31, 2005, balance sheet? Question 7 When the double extension approach to the dollar-value LIFO inventory method is used, the inventory layer added in the current year is multiplied by an index number. Which of the following correctly states how components are used in the calculation of this index number? Question 8 Fireworks, Inc. had an explosion in its plant that destroyed most of its inventory. Its records show that beginning inventory was $ 40,000. Fireworks made purchases of $ 480,000 and sales of $ 620,000 during the year. Its normal gross profit percentage is 25 %. It can sell some of its damaged inventory for $ 5,000. The insurance company will reimburse Fireworks for 70 % of its loss. What amount should Fireworks report as loss from the explosion? Question 9 When the dollar-value LIFO( DV LIFO) retail method is used, what is the first step in the calculation? Question 10 Smith Co. has a checking account at Small Bank and an interestbearing savings account at Big Bank. On December 31, year 1, the bank reconciliations for Smith are as follows: What amount should be classified as cash on Smith ' s balance sheet at December 31, year 1? Question 11 At the end of the current year( calendar-fiscal year), a creditor firm ' s 6 % note receivable balance is $ 10,000. Two years remain in the note term. Interest is due each December 31. The debtor ' s financial