(Solved by Humans)-Problem 5-14A Interpreting The New York Times Company’s Financial Statements The 2011 Form 10-K...

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Problem 5-14A Interpreting The New York Times Company’s Financial Statements The 2011 Form 10-K of The New York Times Company includes the following note:                   4. Inventories Inventories as shown in the accompanying Consolidated Balance Sheets were as follows: (In thousands) December 25, 2011 December 26, 2010 Newsprint and magazine  paper $16,927 $12,596 Other inventory 4,160 3,536 Total $21,087 $16,132 Inventories are stated at the lower of cost or current market value. Cost was determined uti- lizing the LIFO method for 71% of inventory in 2011 and 66% of inventory in 2010. The excess of replacement or current cost over stated LIFO value was approximately $5 million as of De- cember 25, 2011 and December 26, 2010. The remaining portion of inventory is accounted for under the FIFO method. Required 1.        What types of inventory costs does The New York Times Company carry? What about news- papers? Are newspapers considered inventory? 2.        Why would the company choose more than one method to value its inventory?