Kimball International Inc. uses the LIFO method of accountingfor inventory. In its 2017 inventory footnote Kimball reported aLIFO reserve of $19,500 and $21,100 at June 30, 2017 and 2016,respectively. Selected data from the financial statements is below2017 2016 Total inventory $89,489 $76,146 Net Sales 923,636 895,912Cost of Sales 664,311 645,591 Gross Profit 259,325 250,321 Earningsper Share $2.15 $1.96 a. Compute the inventory amount at June 30,2017 for Kimball International Inc. assuming that it had used theFIFO method of accounting for inventory. (3 points) b. DoesKimball’s use of LIFO rather than FIFO affect its cash flows?Explain briefly. (2 points) -- Font family --Andale MonoArialArialBlackBook AntiquaComic Sans MSCourierNewGeorgiaHelveticaImpactSymbolTahomaTerminalTimes NewRomanTrebuchet MSVerdanaWebdingsWingdings -- Font size --1 (8pt)2(10pt)3 (12pt)4 (14pt)5 (18pt)6 (24pt)7 (36pt)
