# The management of Shamrock, Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2022, the accounting records show these data.Inventory, January 1 (12,500 units) \$ 50,000Cost of 129,000 units purchased 568,200Selling price of 104,000 units sold 796,000Operating expenses 129,500Units purchased consisted of 36,000 units at \$4.20 on May 10; 67,000 units at \$4.40 on August 15; and 26,000 units at \$4.70 on November 20. Income taxes are 28%.(a) Prepare comparative condensed income statements for 2022 under FIFO and LIFO.  (Include calculations)

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The management of Shamrock, Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2022, the accounting records show these data.

 Inventory, January 1 (12,500 units) \$ 50,000 Cost of 129,000 units purchased 568,200 Selling price of 104,000 units sold 796,000 Operating expenses 129,500

Units purchased consisted of 36,000 units at \$4.20 on May 10; 67,000 units at \$4.40 on August 15; and 26,000 units at \$4.70 on November 20. Income taxes are 28%.

(a) Prepare comparative condensed income statements for 2022 under FIFO and LIFO.  (Include calculations)

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Step 1

Income statement:

The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

Step 2

a.

Prepare comparative condensed income statements for Incorporation S for ...

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