Question

ONLY NEED NUMBER C! Balance sheet, statement of cash flows, and income statement please!

INIC ac ng ICULUS ULANICU UTALII, C. CLICCICU LIIC BOIRIWIng talanes a UL Jalaly I, Ica 2. Cash Beginning inventory Common stock Retained earnings $36,000 24,000 (200 units a $120) 25,000 The following five transactions occurred in Year 2: 1. First purchase (cash) 130 units @ $124 2. Second purchase (cash) 220 units @ $128 3. Sales (all cash) 350 units @ $320 4. Paid $24,000 cash for operating expenses 5. Paid cash for income tax at the rate of 40 percent of income before taxes Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow. (2) LIFO cost flow, and (3) weighted- average cost flow. Compute income tax expense for each method. b. Record the above transactions in general journal form and post to T-accounts assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted average cost flow. c. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. Coutanceribaditost

Answer 1

1. Income statement

Working notes:

Weighted average cost per unit =  24,000+16,120+28,160 / 550 = $124.145

Income Statement Year 2
	FIFO	LIFO	Weighted average
Sales	$112,000	$112,000	$112,000
Cost of goods sold	42,680 (24,000+16,120+20*$128)	44,280 (28,160+16,120)	43,451 (350*$124.145)
Gross profit	69,320	67,720	68,549
Operating expenses	24,000	24,000	24,000
Income before tax	45,320	43,720	44,549
Income tax@40%	18,128	17,488	17,820
Net income	$27,192	$26,232	$26,729

2. Balance sheet

Working notes:

	FIFO	LIFO	Weighted average
Beginning balance	$36,000	$36,000	$36,000
Add: Cash sales	112,000	112,000	112,000
Less: Cash purchases	44,280	44,280	44,280
Less; Cash payment for operating expenses	24,000	24,000	24,000
Less: Cash payment for income tax	18,128	17,488	17,820
Ending balance	$61,592	$62,232	$61,900

Balance Sheet Year 2
	FIFO	LIFO	Weighted average
Assets:
Non current assets	0	0	0
Current assets:
Cash	$61,592	$62,232	$61,900
Inventory	25,600 (200*$128)	24,000 (200*$120)	24,829 (200*$124.145)
Total current assets	87,192	86,232	86,729
Total assets	$87,192	$86,232	$86,729
Liabilities and stockholder's equity:
Liabilities	0	0	0
Stockholders equity:
Common stock	25,000	25,000	25,000
Retained earnings	62,192 (35,000+27,192)	61,232 (35,000+26,232)	61,729 (35,000+26,729)
Total liabilities and stockholders equity	$87,192	$86,232	$86,729

3. Statement of Cash Flow

Statement of Cash Flow Year 2
	FIFO	LIFO	Weighted average
Cash flow from operating activities:
Cash sales	$112,000	$112,000	$112,000
Cash paid for purchases	44,280	44,280	44,280
Cash paid for operating expenses	24,000	24,000	24,000
Cash paid for income tax	18,128	17,488	17,820
Cash flow from operating activities	25,592	26,232	25,900
Cash flow from investing activities	0	0	0
Cash flow from financing activities	0	0	0
Net increase (decrease) in cash	25,592	26,232	25,900
Beginning cash balance	36,000	36,000	36,000
Ending cash balance	$61,592	$62,232	$61,900