Question

Study Appendix 16A. Kalitzki Implements Company had sales revenue of $710,000 in 20X2.
Pertinent data for its only product in 20X2 included the following:


1. Prepare a statement of gross margin for 20X2. Use two columns, one assuming LIFO and one assuming FIFO.
2. Assume that Kalitzki is reporting to the tax authorities and has a 45% income tax rate. Suppose all transactions are for cash. Which inventory method results in more cash for Kalitzki? By howmuch?


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  • CreatedNovember 19, 2014
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