XML 21 R8.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Inventories | 12 Months Ended
--- | ---
Sep. 30, 2019
Inventory Disclosure [Abstract] |
Inventories | NOTE 2 – INVENTORIES Inventories are valued at the lower of cost or net realizable value. During the fourth quarter of fiscal 2019, the Company changed its method for accounting for cost of inventories from the LIFO method to the FIFO method. The Company believes the FIFO method will improve financial reporting by better reflecting the current value of inventory on the consolidated balance sheets, by more closely aligning the flow of physical inventory with the accounting for the inventory, and by providing better matching of revenues and expenses. Net inventories consist of the following:
|  | September 30, |
|  | 2019 |  |  | 2018 |
|  |  |  |  | (as adjusted) |
Raw materials |  | $ | 14,158,000 |  |  | $ | 13,470,000 |
Work in process |  |  | 1,397,000 |  |  |  | 1,247,000 |
Finished goods |  |  | 9,811,000 |  |  |  | 7,157,000 |
Used equipment |  |  | — |  |  |  | 16,000 |
Inventories, net |  | $ | 25,366,000 |  |  | $ | 21,890,000 |
The fiscal 2018 consolidated financial statements have been retrospectively adjusted to apply the new method of FIFO cost accounting for inventories. The cumulative effect of this change on periods prior to those presented herein resulted in an increase in retained earnings of $ 2,708,000 . Slow - moving and obsolete inventory reserves were $ 4,700,000 and $ 4,543,000 (as adjusted) at September 30, 2019 and 2018, respectively. As a result of the retrospective application of this change in accounting method, the following financial statement line items within the accompanying fiscal 2018 consolidated financial statements were adjusted, as follows:
|  | As Originally Reported under LIFO |  |  | Effect of Change |  |  | As Reported under FIFO |
Consolidated Balance Sheets |  |  |  |  |  |  |  |  |  |  |  |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |
Inventories, net |  | $ | 18,214,000 |  |  | $ | 3,676,000 |  |  | $ | 21,890,000 |
Prepaid expenses |  |  | 1,904,000 |  |  |  | (556,000 | ) |  |  | 1,348,000 |
LIABILITIES & SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |  |
Deferred and other income taxes |  |  | 2,358,000 |  |  |  | 282,000 |  |  |  | 2,640,000 |
Retained earnings |  |  | 128,863,000 |  |  |  | 2,838,000 |  |  |  | 131,701,000 |
Consolidated Income Statements |  |  |  |  |  |  |  |  |  |  |  |
Cost of goods sold |  | $ | 71,993,000 |  |  | $ | (175,000 | ) |  | $ | 71,818,000 |
Income before income tax expense |  |  | 14,889,000 |  |  |  | 175,000 |  |  |  | 15,064,000 |
Income tax expense |  |  | 2,325,000 |  |  |  | 45,000 |  |  |  | 2,370,000 |
Net income |  | $ | 12,564,000 |  |  | $ | 130,000 |  |  | $ | 12,694,000 |
Basic earnings per common share |  | $ | 0.87 |  |  | $ | 0.01 |  |  | $ | 0.88 |
Diluted earnings per common share |  | $ | 0.85 |  |  | $ | 0.01 |  |  | $ | 0.86 |
Consolidated Statements of Cash Flows |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 12,564,000 |  |  | $ | 130,000 |  |  | $ | 12,694,000 |
Deferred and other income taxes |  |  | 757,000 |  |  |  | (495,000 | ) |  |  | 262,000 |
Inventories |  |  | (1,527,000 | ) |  |  | (175,000 | ) |  |  | (1,702,000 | )
Prepaid expenses |  |  | (244,000 | ) |  |  | 556,000 |  |  |  | 312,000 |
Accrued expenses |  |  | (341,000 | ) |  |  | (16,000 | ) |  |  | (357,000 | )
There was no material impact to the previously reported unaudited interim fiscal 2018 quarterly condensed consolidated results of operations or statements of income as a result of the retrospective application of the change in inventory accounting principle.

X
- References No definition available. + Details
Name: | us-gaap_InventoryDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for inventory. Includes, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the classes of inventory, and the nature of the cost elements included in inventory. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 330 -URI http://asc.fasb.org/topic&trid=2126998 + Details
Name: | us-gaap_InventoryDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration