Question

MC Qu. 53 Nu Company reported the following... Nu Company reported the following pretax data for its first year of operations. 2,940 2,390 860 Net sales Cost of goods available for sale Operating expenses Effective tax rate Ending inventories: If LIFO is elected If FIFO is elected 30% 860 1,250 What is Nu's net income if it elects FIFO?

Answer 1

Net sales = $2,940

Less: Cost of goods sold ($2,390 - $1,250) = ($1,140)

Less: Operating Expenses = ($860)

Income Before taxes = $940

Less: Income tax (30%) = ($282)

Net Income = $658