Questions$/$Problems

$($I encourage you to use Excel where relevant; however make sure all numbers are clearly labelled and formatted, and that you also give me the algebraic equations used$).$ Please turn in a SINGLE Word document single$-$spaced with your name as the file name e$.$g$.$ BrianJonesHW$1.$doc:

Trigg Corp. had Net Income of $$45,000$ for $2023.$ Its tax$-$rate is $25$ percent. It borrowed $$400,000$ long$-$term at $10$ percent. Its selling, general, and administrative expense is $$12,000$ and its depreciation expense was $$50,000.$

If its COGS was $$120,000$ in $2023$ and there were no other income statement items, list and complete all the numbers for Trigg$$s $2023$ income statement.

$($Hint: After listing the income statement items, I recommend you start solving for the unknown numbers by starting at the bottom and then working up the statement! Good luck$).$

If Trigg had retained earnings of $$570,000$ at the end of $2022$ and paid a dividend of $$60,000$ in $2023,$ calculate its ending retained earnings for $2023.$

Trigg has just purchased a new piece of equipment in $2024$ for $$600,000.$ This equipment has an expected life of five years, and Trigg expects to be able to sell it for $$100,000$ in five years time.

Given this information, calculate the depreciation expense on this equipment for $2025($note$,$ this is one year after $2024,$ and so the second year of the equipment$$s life$)$ using $($a$)$ straight$-$line depreciation, $($b$)$ sum of the years digits depreciation.

Then, calculate the book value $($net$)$ of the equipment under each method at the end of $2025.$

Trigg had $100,000$ units of inventory left over from $2022$ that it had bought at $$8$ per unit at that time. It bought another $30,000$ units of inventory in $2023$ for $$12$ per unit. It also produced and sold product that contained $80,000$ units of inventory.

Given this information, calculate the $($a$)$ FIFO ending inventory in $2023$ and the corresponding COGS in $2023,($b$)$ LIFO ending inventory in $2023$ and the corresponding COGS in $2023.$