2016 2017 1stQ 2ndQ Зrdo 4thQ 1stQ Sales....... Cost of goods sold (LIFO) ... Operating expenses... $10,000 $12,000 $14,000 $16,000 $18,000 4,000 5,000 5,800 7,000 8,500 .... .... . 2,000 2,200 2,600 3,000 3,200 Income before income $ 4,000 1,600 $ 4,800 $ 5,600 2,240 $ 6,000 2,400 $ 6,300 2,520 taxes..... Income taxes (40%) . 1,920 Net income. $ 2,400 $ 2,880 $ 3,360 $ 3,600 $ 3,780 2017 1stQ 2016 1stQ 4thQ 2ndQ 3rdQ Cost of goods sold (FIFO).. $ 3,800 $ 4,600 $ 5,200 $ 6,000 $ 7,400
Cambi Company began operations on January 1, 2016. In the second quarter of 2017, it adopted the FIFO method of
If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows:
Sales for the second quarter of 2017 are $20,000, cost of goods sold under the FIFO method is $9,000, and operating expenses are $3,400. The effective tax rate remains 40 percent. Cambi Company has 1,000 shares of common stock outstanding.
Prepare a schedule showing the calculation of net income and earnings per share that Cambi reports for the three-month period and the six-month period ended June 30, 2017.
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