Homework Answers
the cash flow saved by using LIFO for tax purpose instead of FIFO is taxes saved.
=20300-9800
=10500
answer c
LIFO resulted in higher cost of goods sold resulting lower profit and hereby lower tax.
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In the preparation of its financial statements the Adda Corporation uses FIFO inventory costing. In the...
In the preparation of its financial statements, the Linda Corporation uses FIFO inventory costing. In the...
In the preparation of its financial statements, the Linda Corporation uses FIFO inventory costing. In the preparation of its federal income taxes return, the Corporation uses LIFO inventory costing. For the year ended December 31, the following information was available from the Corporation's federal income taxes return: Sales $600,000 Cost of Goods Sold $475,000 Gross Profit $125,000 Operating Expenses $90,000 Income from Operations $35,000 Other Revenues and (Expenses) ($2,000) Income Before Taxes $33,000 Income Taxes Expense $11,500 Net Income $21,500...
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Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending...
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e7-6 analyzing and interpreting the financial statement
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Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 1,500 units...
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taxes), $94,000; ending inventory per physical count at December
31, 1,000 units; sales price per unit, $75; and average income tax
rate, 30%.
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PLEASE do not round intermediate calculations but can
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Daniel Company uses a periodic inventory system. Data for the
current year: beginning merchandise inventory (ending inventory
December 31, prior year), 2,000 units at $38; purchases, 8,000
units at $40; expenses (excluding income taxes), $184,500; ending
inventory per physical count at December 31, current year, 1,800
units; sales, 8,200 units; sales price per unit, $75; and average
income tax rate, 30 percent.
Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. (Do not round...
e7-6 analyzing and interpreting the financial statement
effects of periodic fifo, lifo, and weighted average cost
LO 7-3 an e') weighted average cost methods. E7-6 Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO, LIFO, and Weighted Average Cost Onion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assum its accounting records provided the...
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Courtney Company uses a periodic inventory system. The following
data were available: beginning inventory, 1,500 units at $25;
purchases, 3,000 units at $28; operating expenses (excluding income
taxes), $94,000; ending inventory per physical count at December
31, 1,000 units; sales price per unit, $75; and average income tax
rate, 30%.
Prepare income statements under the FIFO, LIFO, and weighted
average costing methods.
PLEASE do not round intermediate calculations but can
you round the final answers to the nearest dollar
amount...
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