as follows:Inventory - merchandise$140,000Inventory - raw materials and WIP 300,000Mike also found that income before taxes under FIFO would have been higher than under LIFO by about $440,000.4. The accounting for income taxes will have to be revised. Pam suggests that the first entry be reversed and a new one be set up. Pam also was informed by Linda Durkee that purchased goodwill could be amortized over 15 years and was deductible for income tax purposes. Consequently, Hydromaint has elected to amortize goodwill over 15 years.5. Pam also noted that the deal for the exchange of crew trucks fell through.6. Finally, Jerry had provided the following segment disclosures from this year's financial reports that he now routinely prepares for Nick and Ray. As before, they use this information to make decisions about the company's operations. Additionally, any transactions and/or adjustments recorded during the year related to the operations of the newly acquired LS-Pump assets were recorded in the merchandising segment. Finally, research and development activities are considered corporate transactions. MaintenanceMerchandisingCorporateTotalCustomer revenue$8,540,00012,548,117-$21,088,117Interest expense--32,56632,566Depreciation & amortization66,59259,529-126,121Segment profit1,955,1572,184,835(352,667)3,787,325Segment assets1,276,9777,710,1771,746,87110,734,025REQUIRED:Based on the data developed by Pam and Mike, redraft the balance sheet and the statement of income and retained earnings and prepare the statement of cash flows and the related notes. All changes must be supported by analyses and/or authoritative sources....
