Question

Nu Company reported the following pretax data for its first year of operations. 20 3.33 points Net sales Cost of goods available for sale Operating expenses Effective tax rate Ending inventories: If LIFO is elected If FIFO is elected 2,840 2,380 850 20% 8 00:53:43 990 1,160 What is Nu's net income if it elects FIFO? Multiple Choice 0 $616. 0 $770 O $480 0 $1,620

Answer 1

Correct answer-------------$616

Working

Income statement
Sales revenue		$            2,840.00
Cost of goods available for sale	$          2,380.00
Less: Ending Inventory	$          1,160.00
Cost of goods sold		$            1,220.00
Gross profit		$            1,620.00
Less: Operating expense		$                850.00
Operating income		$                770.00
Income tax expense		$                154.00
Net Income		$                616.00