The cecil-booker vending company changed its method of valuing inventory from the average cost method to the fifo cost method at the beginning of 2013. at december 31, 2012, inventories were $123,000 (average cost basis) and were $127,000 a year earlier. cecil-booker’s accountants determined that the inventories would have totaled $161,000 at december 31, 2012, and $166,000 at december 31, 2011, if determined on a fifo basis. a tax rate of 40% is in effect for all years. one hundred thousand common shares were outstanding each year. income from continuing operations was $430,000 in 2012 and $555,000 in 2013. there were no extraordinary items either year. required: 1.prepare the journal entry to record the change in accounting principle. (if no entry is required for a particular event, select "no journal entry required" in the first account field.)2. prepare the 2013–2012 comparative income statements beginning with income from continuing operations. include per share amounts. (round eps answers to 2 decimal places.) comparative income statements 2013 2013 earnings per common share

This problem has been solved! see the answercompute and interpret altman's z-scoresfollowing is selected financial information for ebay, for its fiscal years 2005 and 2006.(in millions, except per share data) 2006 2005current assets $ 4,970.59 $ 3,183.24current liabilities 2,518.39 1,484.93total assets 13,494.01 11,788.99total liabilities 2,589.38 1,741.00shares outstanding 1,368.51 1,404.18retained earnings 4,538.35 2,819.64stock price per share 30.07 43.22sales 5,969.74 4,552.40earnings before interest and taxes 1,439.77 1,445.18compute and interpret altman z-scores for the company for both years. (do not round until your final answer; then round your answers to two decimal places.)2006 z-score = answer2005 z-score = answerwhich of the following best describes the company's likelihood to go bankrupt given the z-score in 2006 compared to 2007.the z-score in 2006 is half of the 2005 score. both z-scores are well above the score that represents a healthy company.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly increased the risk of bankruptcy.the z-score in 2006 is half of the 2005 score. the z-score has decreased sharply, which suggests the company is in financial distress.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly lowered the risk of bankruptcy.