The following comparative information is available for Rose Company for 2017.

LIFO FIFO

Sales revenue

$86,000. $86,000

Cost of goods sold

38,000. 29,000

Operating expenses (including depreciation)

27,000. 27,000

Depreciation

10,000. 10,000

Cash paid for inventory purchases

32,000. 32,000

Determine net income under each approach.

Assume a 30% tax rate.

Determine net cash provided by operating activities under each approach. Assume that all sales were on a cash basis and that income taxes and operating expenses, other than depreciation, were on a cash basis.

Calculate the quality of earnings ratio under each approach

Answer rating: 100% (QA)

Requirement A LIFO FIFO Net Income 14700 21000 Workings LI... View the full answer