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AccountingCornerstones of Financial Accounting4th Edition

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Chapter 12, Problem 93PSB
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Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

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Section
Problem 1DQ
Problem 2DQ
Problem 3DQ
Problem 4DQ
Problem 5DQ
Problem 6DQ
Problem 7DQ
Problem 8DQ
Problem 9DQ
Problem 10DQ
Problem 11DQ
Problem 12DQ
Problem 13DQ
Problem 14DQ
Problem 15DQ
Problem 16DQ
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Problem 2MCQ
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Problem 4MCQ
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Problem 6MCQ
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Problem 19MCQ
Problem 20MCQ
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Problem 22MCQ
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Problem 25MCQ
Problem 26MCQ
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Problem 28MCQ
Problem 29MCQ
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Problem 46CE
Problem 47CE
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Problem 52CE
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Problem 54CE
Problem 55CE
Problem 56CE
Problem 57BE
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Problem 59BE
Problem 60BE
Problem 61BE
Problem 62BE
Problem 63BE
Problem 64BE
Problem 65BE
Problem 66BE
Problem 67BE
Problem 68E
Problem 69E
Problem 70E
Problem 71E
Problem 72E
Problem 73E
Problem 74E
Problem 75E
Problem 76E
Problem 77E
Problem 78E
Problem 79E
Problem 80E
Problem 81E
Problem 82E
Problem 83E
Problem 84PSA
Problem 85PSA
Problem 86PSA
Problem 87PSA
Problem 88PSA
Problem 89PSA
Problem 90PSA
Problem 91PSA
Problem 92PSA
Problem 93PSA
Problem 84PSB
Problem 85PSB
Problem 86PSB
Problem 87PSB
Problem 88PSB
Problem 89PSB
Problem 90PSB
Problem 91PSB
Problem 92PSB
Problem 93PSB
Problem 94C
Problem 95.1C
Problem 95.2C
Problem 96.1C
Problem 96.2C
Problem 97.1C
Problem 97.2C
Problem 97.3C
Problem 97.4C
Problem 97.5C
Problem 97.6C
Problem 98.1C
Problem 98.2C
Problem 98.3C
Problem 99.1C
Problem 99.2C
Problem 99.3C
Problem 99.4C
Problem 99.5C
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
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Problem 1 2-93B Accounting Alternatives and Financial Analysis

Affordable Autos Inc. has asked your bank for a SlOO.000 loan to expand its sales facility. Affordable Autos provides you with the following data:

Chapter 12, Problem 93PSB, Problem 1 2-93B Accounting Alternatives and Financial Analysis Affordable Autos Inc. has asked your , example 1

Your inspection of the financial statements of other automobiles sales firms indicates that most of these firms adopted the LIFO method in the late 1970s. You further note that Afford able Autos has used 10% of depreciable asset cost when computing depreciation expense and that other automobile dealers use 20%. Assume that Affordable Autos's effective tax rate is 30% of income before tax. Also assume the following:

Chapter 12, Problem 93PSB, Problem 1 2-93B Accounting Alternatives and Financial Analysis Affordable Autos Inc. has asked your , example 2

Required:

1. Compute cost of goods sold for 2017-2019. using both the FIFO and the LIFO methods.

2. Compute depreciation expense for Affordable Autos for 2017-2019. using both 10% and 20% of the cost of depreciable assets.

3. Recompute Affordable Autos's net income for 2017-2019. using LIFO and 20% depreciation. (Do&t forget the tax impact of the increases in cost of goods sold and depreciation expense.)

4. CONCEPTUAL CONNECTiON Does Affordable Autos appear to have materially changed its financial statements by the selection of FIFO (rather than LIFO) and l0% (rather than 20%) depreciation?

Chapter 12, Problem 93PSB, Problem 1 2-93B Accounting Alternatives and Financial Analysis Affordable Autos Inc. has asked your , example 3

To determine

(a)

Cost of goods sold: Cost of goods sold alludes to the immediate costs owing to the creation of the goods sold in an organization. This sum incorporates the cost of the materials utilized in making the great alongside the immediate work costs used to create the great. .. Cost of goods sold is likewise alluded to as "cost of sale."

To discuss:

The cost of goods sold using LIFO and FIFO.

Explanation

Cost of goods sold = Opening stock + purchase + direct expense − closing stock

As per FIFO,

COGS (2017) = 420000 + 4990000 − 510000 = 4900000

COGS (2018) = 510000 + 5200000 − 620000 = 5090000

COGS (2019) = 620...

To determine

(b)

Depreciation is that amount which is normally tear and wear of any machine in during the process of production.

To discuss:

The depreciation amount for 2017-19 using both 5% and 10% of depreciable assets.

To determine

(c)

Net income means: The company sale goods from the factory after manufacturing the goods and added all types of expense then the company gets some income then reduce expenses from the income and the net profit is calculated.

To compute:

The net income after considering all expenses.

To determine

(d)

Net income means: The company sale goods from the factory after manufacturing the goods and added all types of expense then the company gets some income then reduce expenses from the income and the net profit is calculated.

To compute:

The net income after considering all expenses.

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Ch-12 P-11DQCh-12 P-12DQCh-12 P-13DQCh-12 P-14DQCh-12 P-15DQCh-12 P-16DQCh-12 P-1MCQCh-12 P-2MCQCh-12 P-3MCQCh-12 P-4MCQCh-12 P-5MCQCh-12 P-6MCQCh-12 P-7MCQCh-12 P-8MCQCh-12 P-9MCQCh-12 P-10MCQCh-12 P-11MCQCh-12 P-12MCQCh-12 P-13MCQCh-12 P-14MCQCh-12 P-15MCQCh-12 P-16MCQCh-12 P-17MCQCh-12 P-18MCQCh-12 P-19MCQCh-12 P-20MCQCh-12 P-21MCQCh-12 P-22MCQCh-12 P-23MCQCh-12 P-24MCQCh-12 P-25MCQCh-12 P-26MCQCh-12 P-27MCQCh-12 P-28MCQCh-12 P-29MCQCh-12 P-30MCQCh-12 P-31MCQCh-12 P-32MCQCh-12 P-33MCQCh-12 P-34MCQCh-12 P-35MCQCh-12 P-36MCQCh-12 P-37MCQCh-12 P-38MCQCh-12 P-39MCQCh-12 P-40MCQCh-12 P-41MCQCh-12 P-42MCQCh-12 P-43MCQCh-12 P-44MCQCh-12 P-45MCQCh-12 P-46CECh-12 P-47CECh-12 P-48CECh-12 P-49CECh-12 P-50CECh-12 P-51CECh-12 P-52CECh-12 P-53CECh-12 P-54CECh-12 P-55CECh-12 P-56CECh-12 P-57BECh-12 P-58BECh-12 P-59BECh-12 P-60BECh-12 P-61BECh-12 P-62BECh-12 P-63BECh-12 P-64BECh-12 P-65BECh-12 P-66BECh-12 P-67BECh-12 P-68ECh-12 P-69ECh-12 P-70ECh-12 P-71ECh-12 P-72ECh-12 P-73ECh-12 P-74ECh-12 P-75ECh-12 P-76ECh-12 P-77ECh-12 P-78ECh-12 P-79ECh-12 P-80ECh-12 P-81ECh-12 P-82ECh-12 P-83ECh-12 P-84PSACh-12 P-85PSACh-12 P-86PSACh-12 P-87PSACh-12 P-88PSACh-12 P-89PSACh-12 P-90PSACh-12 P-91PSACh-12 P-92PSACh-12 P-93PSACh-12 P-84PSBCh-12 P-85PSBCh-12 P-86PSBCh-12 P-87PSBCh-12 P-88PSBCh-12 P-89PSBCh-12 P-90PSBCh-12 P-91PSBCh-12 P-92PSBCh-12 P-93PSBCh-12 P-94CCh-12 P-95.1CCh-12 P-95.2CCh-12 P-96.1CCh-12 P-96.2CCh-12 P-97.1CCh-12 P-97.2CCh-12 P-97.3CCh-12 P-97.4CCh-12 P-97.5CCh-12 P-97.6CCh-12 P-98.1CCh-12 P-98.2CCh-12 P-98.3CCh-12 P-99.1CCh-12 P-99.2CCh-12 P-99.3CCh-12 P-99.4CCh-12 P-99.5C

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