Question
In: Accounting
Income is to be evaluated under four different situations as follows: a. Prices are rising: (1)...
Income is to be evaluated under four different situations as follows:
a. Prices are rising:
(1) Situation A: FIFO is used.
(2) Situation B: LIFO is used.
b. Prices are falling:
(1) Situation C: FIFO is used.
(2) Situation D: LIFO is used.
The basic data common to all four situations are: sales, 502 units
for $16,064; beginning inventory, 287 units; purchases, 388 units;
ending inventory, 173 units; and operating expenses, $3,100. The
income tax rate is 30%.
Required:
1. Complete the following tabulation for each situation in Situations A and B (prices rising), assume the following: beginning inventory, 287 units at $11 = $3,157; purchases, 388 units at $12 = $4,656. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 287 units at $12 = $3,444; purchases, 388 units at $11 = $4,268.Use periodic inventory procedures.(Round your answers to nearest dollar amount
|
prices rising SITUATION A |
SITUATION B |
prices falling situation A |
SITUATION B | ||
| SALES REVENUE | $16064 | 16064 | 16064 | 16064 | |
| BEGINING INVENTORY | 3157 | ||||
| PURCHASES | 4656 | ||||
| GOODS AVAILABLE FOR SALE | 7813 | ||||
|
2076 | ||||
| COST OF GOODS SOLD | 5737 | ||||
| GROSS PROFIT | 10327 | ||||
| EXPENSES | 3100 | 3100 | 3100 | 3100 | |
| PRETAX INCOME | 7227 | ||||
| INCOME TAX EXPENSE | 2168 | ||||
| NET INCOME | $5,059 |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Income is to be evaluated under four different situations as follows: a. Prices are rising: (1)...
Income is to be evaluated under four different situations as
follows:
a. Prices are rising:
(1) Situation A: FIFO is used.
(2) Situation B: LIFO is used.
b. Prices are falling:
(1) Situation C: FIFO is used.
(2) Situation D: LIFO is used.
The basic data common to all four situations are: sales, 502 units
for $16,064; beginning inventory, 287 units; purchases, 388 units;
ending inventory, 173 units; and operating expenses, $3,100. The
income tax rate is 30%.
Required:
1....
Income is to be evaluated under four different situations as follows: a. Prices are rising: (1)...
Income is to be evaluated under four different situations as
follows:
a. Prices are rising:
(1) Situation A: FIFO is used.
(2) Situation B: LIFO is used.
b. Prices are falling:
(1) Situation C: FIFO is used.
(2) Situation D: LIFO is used.
The basic data common to all four situations are: sales, 517 units
for $18,612; beginning inventory, 295 units; purchases, 386 units;
ending inventory, 164 units; and operating expenses, $4,000. The
income tax rate is 30%.
Required: 1....
(a) Under the Income Tax Ordinance, 2001 identify four situations under which an appeal may be...
(a) Under the Income Tax Ordinance, 2001 identify four
situations under which an appeal may be filed with the Commissioner
(Appeals). (04)
(b) Sadiq Ali has received an ex-parte assessment order from the
income tax department under which he is required to pay Rs. 5.2
million on account of tax not withheld from certain payments. He
does not agree with the contention of the income tax department and
would like to file an appeal to the Commissioner (Appeals).
Required: State...
1. If the interest rate is rising and stock prices are simultaneously rising, then according to...
1. If the interest rate is rising and stock prices are
simultaneously rising, then according to the fundamental theory of
stock pricing
There must be irrational agents in the market
The expected dividends of firms must be falling
The future price of the stock must be falling
Expected dividends of firms must be rising
2. Consider the stable growth or steady state model of a stock
price. If the price of the stock is $40 per share, the yield on...
Explain the impact of rising prices on the gross profit both under LIFO and FIFO. Provide...
Explain the impact of rising prices on the gross profit both
under LIFO and FIFO. Provide a numerical example to illustrate your
answer.
Financial information follows for four different companies:
Financial information follows for four different companies:
Ace Consulting Inc.
Brrrr Freezers Corp.
Capital Consumer Inc.
Death Star Ltd.
Sales Revenue
$98,000
(c)
$144,000
$120,000
Sales Returns and Allowances
(a)
$ 5,000
12,000
9,000
Net Sales Revenue
74,000
101,000
132,000
(g)
Beginning Inventory
21,000
(d)
44,000
24,000
Purchases
63,000
105,000
(e)
90,000
Returns and Allowances
6,000
10,000
8,000
(h)
Ending Inventory
(b)
48,000
30,000
28,000
Cost of Goods Sold
64,000
72,000
(f)
72,000
Gross Profit
10,000
29,000
18,000
(i)...
1. Analyze the impact of rising oil prices on the aggregate expenditure and output of the...
1. Analyze the impact of rising oil prices on the aggregate
expenditure and output of the economy of a country
2. Identify 3 injections that may be increased to offset the
negative impact of the leakages
1–4 PART A - PLAN The situation is as follows: With the cost of attendance rising,...
1–4 PART A - PLAN
The situation is as follows: With the cost of attendance rising,
BYU administrators are worried that BYU students are graduating
with more and more debt. In a random sample of 312 BYU
undergraduate students who graduated in April 2019, 145 of them
reported having student debt. Is there sufficient evidence to
conclude that less than half of BYU undergraduate students who
graduated in April 2019 have student debt? Use a 5% significance
level. SHOW YOUR...
QUESTION 1 If both prices and production are rising throughout the economy, then: A. Real GDP...
QUESTION 1
If both prices and production are rising throughout the economy,
then:
A.
Real GDP rises faster than Nominal GDP.
B.
Real GDP rises slower than Nominal GDP.
C.
Real GDP rises at the same rate as Nominal GDP.
D.
Real GDP falls at a slower rate than Nominal GDP.
1 points
QUESTION 2
The CPI underestimates the inflation rate because:
A.
it excludes imported goods.
B.
it is derived by dividing NDGP by RGDP.
C.
it is...
1 - Setting transfer prices can be especially problematic when: a) Managers are evaluated based on...
1 - Setting transfer prices can be especially problematic
when:
a) Managers are evaluated based on non-financial factors
b) Compensation is tied to the financial performance of
responsibility centres
c) Centralized decision-making is the organizational norm
d) Compensation is tied to the financial performance of the
organization as a whole
2. A transfer pricing policy based on market price:
a) Maximizes total organizational profit
b) Is best because the market price is always objective and
easily obtainable
c) May result...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Singh Development Co. is deciding whether to proceed with Project X. The cost would be $12...
- CS2123 Data Structures - Fall 2019 Assignment 1: Function Runtimes Table Due 9/11/19 by 11:59pm Completing...
- Question 2. Design a 16-1 MUX using any number of lower MUXs, such as 8-1 or...
- . Write a function that takes, as arguments, two objects, value1 and value2. If
- Wii Brothers, a game manufacturer, has a new idea for an adventure game. It can market...
- Consider the distillation of ethanol (C2H5OH) and the combustion of ethanol . Use a bullet point...
- 1.How does Economic exposure to exchange rate movements affect the capital budgeting of a firm? Provide...
ADVERTISEMENT