Barker Company paid cash to purchase two identical inventory items. The first purchase cost $18.00 cash and the second cost $20.00 cash. Barker sold one inventory item for $30.00 cash. Based on this information alone, without considering the effect of income taxes, which of the following statements is correct? Multiple Choice The amount of cash flow from operating activities is not affected by the inventory cost flow method chosen. Cash flow from operating activities is $11.00 assuming the weighted-average inventory cost flow method is used. Cash flow from operating activities is $12.00 assuming the FIFO inventory cost flow method is used. Cash flow from operating activities is $10.00 assuming the LIFO inventory cost flow method is used.

Barker Company paid cash to purchase two identical inventory items. The first purchase cost $18.00 cash and the second cost $20.00 cash. Barker sold one inventory item for $30.00 cash. Based on this information alone, without considering the effect of income taxes, which of the following statements is correct? Multiple Choice The amount of cash flow from operating activities is not affected by the inventory cost flow method chosen. Cash flow from operating activities is $11.00 assuming the weighted-average inventory cost flow method is used. Cash flow from operating activities is $12.00 assuming the FIFO inventory cost flow method is used. Cash flow from operating activities is $10.00 assuming the LIFO inventory cost flow method is used.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On June 1, Calumet Corp. paid $25,000 for inventory previously purchased on account. Which of the following statements is correct with respect to how this transaction should be shown on the transaction worksheet? Select one: a. The cash account will decrease and the deferred revenue account will decrease. b. The inventory account will decrease and the cash account will decrease. c. The cash account will decrease and the accounts payable account will decrease. d. The cash account will decrease and the retained earnings account will decrease. e. The cash account will increase and the accounts payable account will increase.
Assume the perpetual inventory system is used unless stated otherwise.Accounting principles for inventory and applying the lower-of-cost-or-market rule Some of M and C Electronics’s merchandise is gathering dust. It is now December 31, 2018, and the current replacement cost of the ending merchandise inventory is $24,000 below the business’s cost of the goods, which was $97,000. Before any adjustments at the end of the period, the company’s Cost of Goods Sold account has a balance of $380,000. Requirements Journalize any required entries. At what amount should the company report merchandise inventory on the balance sheet? At what amount should the company report cost of goods sold on the income statement? Which accounting principle or concept is most relevant to this situation?
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Use the following information to answer this question: Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Cash Accounts received Inventory Windswept, Incorporated 2021 Income Statement ($ in millions) Total Net fixed assets Total assets 2020 $ 270 1, 090 1, 760 $ 3, 120 3, 460 $ 6, 580 2021 $ 290 $ 9,950 7,900 365 990 1, 650 $ 1,685 98 Windswept, Incorporated 2020 and 2021 Balance Sheets ($ in millions) $ 1,587 333 $ 1,254 Accounts payable Long-term debt Common stock Retained earnings $ 2,930 4, 040 $ 6,970 Total liabilities & equity 2020 $ 1,540 1, 060 3, 340 640 $ 6, 580 2021 $ 1,812 1, 248 3, 020 890 $ 6,970 Windswept, Incorporated, has 540 million shares of stock outstanding. Its price-earnings ratio for 2021 is 15. What is the market price per share of stock?
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