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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 Waterway 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. Waterway’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 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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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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Exercise 23-11 Condensed financial data of Headland Company for 2017 and 2016 are presented below. HEADLAND COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) 2016 $1,830 $1,130 1,770 1,290 1,920 1,940 1,680 1,620 (1,190) (1,170) 1,300 1,410 $7,270 $6,260 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,220 210 $910 260 1,4201,530 1,8901,710 1,850 $7,270 $6,260 2,530 RCES HEADLAND COMPANY INCOME STATEMENT 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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Question 3
Company XYZ switched from LIFO inventory to FIFO during the
year. The pretax income data under each method is the
following:
1) FIFO: $210,000 in 2020; $135,000 in 2019; $142,500 in
2018
2) LIFO: $189,000 in 2020; $111,500 in 2019; $138,000 in
2018
What net income amount did the company report in 2018? 2020?
Assume a tax rate of 30%. Prepare the comparative income statements
for the company in 2020.
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Comprehensive: Comparative Income Statements Tiger Company's accountant for the prepared comparative income statements for 2016 and 2017 as follows: Comparative Income Statements For Years Ended December 31 2017 2016 Sales Cost of goods sold Gross profit Operating expenses Operating income Other items Income before income taxes Income tax expense (30%) $ 3,500,000 (1,600,000) $ 1,900,000 (1,300,000) 5600,000 (200,000) $400,000 (120,000) $280,000 $4,600,000 (2,600,000) $2,000,000 (1,500,000) $500,000 100,000 $600,000 (180,000) $420,000 Net income The auditor of Tiger Company reviewed the accounting...
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Common-Size and Forecast Income Statements Refer to the income statements for The Gap, Inc., presented below. a. Prepare common-size income statements for fiscal years 2017 (ending February 3, 201 Round answers to one decimal place (i.e., 0.2568 = 25.7%). The Gap, Inc. Common-Size Income Statements Fiscal year ended Feb. 3, 2018 Jan. 28, 2017 Net sales $15,855 100 % $15,516 100 % Cost of goods sold & occupancy expenses 9,789 61.796 9,876 63.7 96 Gross profit 6,066 38.3 % 5,640...
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 Waterway 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. Waterway’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 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...
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...
Exercise 23-11 Condensed financial data of Headland Company for 2017 and 2016 are presented below. HEADLAND COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) 2016 $1,830 $1,130 1,770 1,290 1,920 1,940 1,680 1,620 (1,190) (1,170) 1,300 1,410 $7,270 $6,260 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,220 210 $910 260 1,4201,530 1,8901,710 1,850 $7,270 $6,260 2,530 RCES HEADLAND COMPANY INCOME STATEMENT 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...
Comprehensive: Comparative Income Statements Tiger Company's accountant for the prepared comparative income statements for 2016 and 2017 as follows: Comparative Income Statements For Years Ended December 31 2017 2016 Sales Cost of goods sold Gross profit Operating expenses Operating income Other items Income before income taxes Income tax expense (30%) $ 3,500,000 (1,600,000) $ 1,900,000 (1,300,000) 5600,000 (200,000) $400,000 (120,000) $280,000 $4,600,000 (2,600,000) $2,000,000 (1,500,000) $500,000 100,000 $600,000 (180,000) $420,000 Net income The auditor of Tiger Company reviewed the accounting...
Common-Size and Forecast Income Statements Refer to the income statements for The Gap, Inc., presented below. a. Prepare common-size income statements for fiscal years 2017 (ending February 3, 201 Round answers to one decimal place (i.e., 0.2568 = 25.7%). The Gap, Inc. Common-Size Income Statements Fiscal year ended Feb. 3, 2018 Jan. 28, 2017 Net sales $15,855 100 % $15,516 100 % Cost of goods sold & occupancy expenses 9,789 61.796 9,876 63.7 96 Gross profit 6,066 38.3 % 5,640...