Business Case Studies & Business Publications

General Electric Company: Inventory

Lynch, Luann J.

Exercise

General Electric Company: Inventory

Lynch, Luann J.

C-2336 | Published October 3, 2012 Exercise

Collection: Darden School of Business

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This exercise presents the inventory footnote from General Electric Company's 2011 annual report. Students are asked to make inferences about inventory values on the balance sheet and to use the LIFO reserve to restate various balance-sheet and income-statement accounts to an as-if FIFO basis. This note replaces C-2242.

This exercise is designed for use during the introductory module of a financial accounting course. It is intended to expose students to the inventory footnotes, calculating inventory balances using the LIFO reserve, and the impact that a chosen inventory method will have on various balance sheet and income statement items.