The following information pertains to the inventory of Parvin Company: Jan. 1 Beginning inventory Purchased Purchased...
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The following information pertains to the inventory of Parvin Company: Jan. 1 Beginning inventory Purchased Purchased Apr. 1 Oct. 1 400 units @ $21 2,600 units @ $26 @ $27 900 units During the year, Parvin sold 3,315 units of inventory at $43 per unit and incurred $16,700 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $46,600, inventory of $8,400, common stock of $31,000, and retained earnings of $24,000. Required a. Prepare income statements using FIFO and LIFO. b. Determine the amount of income tax that Parvin would pay using each cost flow method. c. Determine the cash flow from operating activities under FIFO and LIFO. The following information pertains to the inventory of Parvin Company: Jan. 1 Beginning inventory Purchased Purchased Apr. 1 Oct. 1 400 units @ $21 2,600 units @ $26 @ $27 900 units During the year, Parvin sold 3,315 units of inventory at $43 per unit and incurred $16,700 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $46,600, inventory of $8,400, common stock of $31,000, and retained earnings of $24,000. Required a. Prepare income statements using FIFO and LIFO. b. Determine the amount of income tax that Parvin would pay using each cost flow method. c. Determine the cash flow from operating activities under FIFO and LIFO.
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Answer rating: 100% (QA)
a Prepare income statements using FIFO and LIFO Using FIFO Sales Revenue 3315 units x 43 142545 Cost ... View the full answer
Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
Posted Date:
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