The following information pertains to the inventory Parvin Company. Jan. 1 Apr. 1 Oct. 1 400 units 2,700 units Beginning inventory Purchased Purchased During the year, Parvin sold 3,400 units of inventory at $44 per unit and incurred $15.900 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 $116,800, inventory of $7.200, common stock of $100,000, 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 Required A Required B Complete this question by entering your answers in the tabs below. Required C @ $18 $23 900 units @ $24 PARVIN COMPANY Income Statements For the Year Ended December 31 FIFO Prepare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearest whole dollar amount.) LIFO
The following information pertains to the inventory Parvin Company. Jan. 1 Apr. 1 Oct. 1 400 units 2,700 units Beginning inventory Purchased Purchased During the year, Parvin sold 3,400 units of inventory at $44 per unit and incurred $15.900 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 $116,800, inventory of $7.200, common stock of $100,000, 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 Required A Required B Complete this question by entering your answers in the tabs below. Required C @ $18 $23 900 units @ $24 PARVIN COMPANY Income Statements For the Year Ended December 31 FIFO Prepare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearest whole dollar amount.) LIFO
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....
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