Final answer:
To adjust for LIFO to FIFO, subtract the change in LIFO reserve for the balance sheet, add the change in LIFO reserve for the income statement, and calculate the inventories percentage for LIFO and FIFO.
Step-by-step explanation:
To adjust the balance sheet line items for 2019, we need to convert the LIFO (Last-In, First-Out) inventory valuation to FIFO (First-In, First-Out). The adjustment can be calculated by subtracting the change in LIFO reserve from the current year's LIFO reserve.
In this case, the adjustment would be $4,300 - ($4,300 - $2,900) = $2,900.
To adjust the income statement line items for 2019, we need to account for the impact of the LIFO to FIFO conversion on cost of goods sold (COGS).
The adjustment can be calculated by adding the change in LIFO reserve to the current year's COGS. In this case, the adjustment would be $3,776 + ($4,300 - $2,900) = $5,176.
To compute the common-size inventories percentage with LIFO and FIFO for 2019, we need to calculate the percentage of inventories with respect to total assets. With LIFO inventory valuation, the inventories percentage would be $3,776 / $58,720 * 100 = 6.43%.
With FIFO inventory valuation, the inventories percentage would be ($3,776 + $2,900) / $58,720 * 100 = 10.96%.