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Presented below are income statements prepared on a LIFO and
FIFO basis for Marigold Company, which started operations on
January 1, 2016. The company presently uses the LIFO method of
pricing its inventory and has decided to switch to the FIFO method
in 2017. The FIFO income statement is computed in accordance with
the requirements of GAAP. Marigold’s profit-sharing agreement with
its employees indicates that the company will pay employees 10% of
income before profit-sharing. Income taxes are ignored
LIFO...
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Presented below are income statements prepared on a LIFO and
FIFO basis for Cullumber Company, which started operations on
January 1, 2019. The company presently uses the LIFO method of
pricing its inventory and has decided to switch to the FIFO method
in 2020. The FIFO income statement is computed in accordance with
the requirements of GAAP. Cullumber’s profit-sharing agreement with
its employees indicates that the company will pay employees 10% of
income before profit-sharing. Income taxes are ignored.
LIFO...
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Presented below are income statements prepared on a LIFO and
FIFO basis for Grouper Company, which started operations on January
1, 2016. The company presently uses the LIFO method of pricing its
inventory and has decided to switch to the FIFO method in 2017. The
FIFO income statement is computed in accordance with the
requirements of GAAP. Grouper’s profit-sharing agreement with its
employees indicates that the company will pay employees 10% of
income before profit-sharing. Income taxes are ignored.
LIFO...
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Presented below are income statements prepared on a LIFO and
FIFO basis for Headland Company, which started operations on
January 1, 2016. The company presently uses the LIFO method of
pricing its inventory and has decided to switch to the FIFO method
in 2017. The FIFO income statement is computed in accordance with
the requirements of GAAP. Headland’s profit-sharing agreement with
its employees indicates that the company will pay employees 10% of
income before profit-sharing. Income taxes are ignored.
LIFO...
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SIV Vownloadable eTextbook gnment CALCULATOR MESSAGE HY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 22-5 Presented below are income statements prepared on a LIFO and FIFO basis for Monty Company, which started operations on January 1, 2016. The company presently uses the LIFO method of pricing its inventory and has decided to switch to the FIFO method in 2017. The FIFO income statement is computed in accordance with the requirements of GAAP. Monty's profit-sharing agreement with its employees indicates...
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Swifty Co. decides at the beginning of 2017 to adopt the FIFO
method of inventory valuation. Swifty had used the LIFO method for
financial reporting since its inception on January 1, 2015, and had
maintained records adequate to apply the FIFO method
retrospectively. Swifty concluded that FIFO is the preferable
inventory method because it reflects the current cost of inventory
on the balance sheet. The following table presents the effects of
the change in accounting principles on inventory and cost...
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Problem 22-1 The management of Pronghorn Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Pronghorn changed its method of pricing inventory from last-in, first-out (LIFO) to average-cost in 2017. Given below is the 5-year summary of income under LIFO and a schedule of what the inventories would be if stated on the average-cost method. 2017 $18,740 PRONGHORN INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE...
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Smart Company prepared its annual financial statements dated December 31, 2017. The company applies the FIFO inventory costing method; however, the company neglected to apply the LC&NRV valuation to the ending inventory. The preliminary 2017 statement of earnings follows: $ 299,000 Sales revenue Cost of sales Beginning inventory Purchases $ 32,900 203,000 Cost of goods available for sale Ending inventory (FIFO cost) Cost of sales 235,900 79. 104 156,796 Gross profit Operating expenses 142,204 63,900 Pretax earnings Income tax expense...
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Problem 12-07A Presented below are the financial statements of Waterway Industries. Waterway Industries Comparative Balance Sheets December 31 Assets 2022 2021 $58,000 $101,500 Cash 40,600 Accounts receivable 58,000 81,200 Inventory 58,000 Property, plant, and equipment 174,000 226,200 (92,800) (69,600) Accumulated depreciation $321,900 $313,200 Total Liabilities and Stockholders' Equity $ 43,500 $55,100 Accounts payable Income taxes payable 20,300 23,200 Bonds payable 49,300 95,700 52,200 Common stock 40,600 Retained earnings 110,200 145,000 $321,900 $313,200 Total Waterway Industries Income Statement For the Year...
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Fantasy Fashions had used the LIFO method of costing
inventories, but at the beginning of 2018 decided to change to the
FIFO method. The inventory as reported at the end of 2017 using
LIFO would have been $27 million higher using FIFO.
Retained earnings reported at the end of 2016 and 2017 was $247
million and $267 million, respectively (reflecting the LIFO
method). Those amounts reflecting the FIFO method would have been
$257 million and $279 million, respectively. 2017 net...
Presented below are income statements prepared on a LIFO and
FIFO basis for Marigold Company, which started operations on
January 1, 2016. The company presently uses the LIFO method of
pricing its inventory and has decided to switch to the FIFO method
in 2017. The FIFO income statement is computed in accordance with
the requirements of GAAP. Marigold’s profit-sharing agreement with
its employees indicates that the company will pay employees 10% of
income before profit-sharing. Income taxes are ignored
LIFO...
Presented below are income statements prepared on a LIFO and
FIFO basis for Cullumber Company, which started operations on
January 1, 2019. The company presently uses the LIFO method of
pricing its inventory and has decided to switch to the FIFO method
in 2020. The FIFO income statement is computed in accordance with
the requirements of GAAP. Cullumber’s profit-sharing agreement with
its employees indicates that the company will pay employees 10% of
income before profit-sharing. Income taxes are ignored.
LIFO...
Presented below are income statements prepared on a LIFO and
FIFO basis for Grouper Company, which started operations on January
1, 2016. The company presently uses the LIFO method of pricing its
inventory and has decided to switch to the FIFO method in 2017. The
FIFO income statement is computed in accordance with the
requirements of GAAP. Grouper’s profit-sharing agreement with its
employees indicates that the company will pay employees 10% of
income before profit-sharing. Income taxes are ignored.
LIFO...
Presented below are income statements prepared on a LIFO and
FIFO basis for Headland Company, which started operations on
January 1, 2016. The company presently uses the LIFO method of
pricing its inventory and has decided to switch to the FIFO method
in 2017. The FIFO income statement is computed in accordance with
the requirements of GAAP. Headland’s profit-sharing agreement with
its employees indicates that the company will pay employees 10% of
income before profit-sharing. Income taxes are ignored.
LIFO...
SIV Vownloadable eTextbook gnment CALCULATOR MESSAGE HY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 22-5 Presented below are income statements prepared on a LIFO and FIFO basis for Monty Company, which started operations on January 1, 2016. The company presently uses the LIFO method of pricing its inventory and has decided to switch to the FIFO method in 2017. The FIFO income statement is computed in accordance with the requirements of GAAP. Monty's profit-sharing agreement with its employees indicates...
Problem 22-1 The management of Pronghorn Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Pronghorn changed its method of pricing inventory from last-in, first-out (LIFO) to average-cost in 2017. Given below is the 5-year summary of income under LIFO and a schedule of what the inventories would be if stated on the average-cost method. 2017 $18,740 PRONGHORN INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE...
Smart Company prepared its annual financial statements dated December 31, 2017. The company applies the FIFO inventory costing method; however, the company neglected to apply the LC&NRV valuation to the ending inventory. The preliminary 2017 statement of earnings follows: $ 299,000 Sales revenue Cost of sales Beginning inventory Purchases $ 32,900 203,000 Cost of goods available for sale Ending inventory (FIFO cost) Cost of sales 235,900 79. 104 156,796 Gross profit Operating expenses 142,204 63,900 Pretax earnings Income tax expense...
Problem 12-07A Presented below are the financial statements of Waterway Industries. Waterway Industries Comparative Balance Sheets December 31 Assets 2022 2021 $58,000 $101,500 Cash 40,600 Accounts receivable 58,000 81,200 Inventory 58,000 Property, plant, and equipment 174,000 226,200 (92,800) (69,600) Accumulated depreciation $321,900 $313,200 Total Liabilities and Stockholders' Equity $ 43,500 $55,100 Accounts payable Income taxes payable 20,300 23,200 Bonds payable 49,300 95,700 52,200 Common stock 40,600 Retained earnings 110,200 145,000 $321,900 $313,200 Total Waterway Industries Income Statement For the Year...