$ 35,000 7,300 4,500 $ 23,200 5,800 $ 17,400 $ 37,000 8,100 4,900 $ 24,000 6,000 $ 18,000 $ 39,000 9,300 5,300 $ 24,400 6,100 $ 18,300 $ 41,000 10,800 5,500 $ 24,700 6,175 $ 18,525

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Chapter1: Financial Statements And Business Decisions
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Volata Company began operations on January 1, 2023. In the second quarter of 2024, it adopted the FIFO method of inventory
valuation. In the past, it used the LIFO method. The company's interim income statements as originally reported under the LIFO
method follow:
Accounts
Sales
Cost of goods sold (LIFO)
Operating expenses
Income before income taxes
Income taxes (25%)
Net income
Accounts
Cost of goods sold (FIFO)
2023
2024
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter
$ 33,000
$ 35,000
$ 39,000
$ 41,000
7,300
4,500
$ 23, 200
5,800
10,800
5,500
$ 24,700
6,175
$ 17,400
$ 18,525
6,300
4,300
$ 22,400
5,600
$ 16,800
Net income
Earnings per share
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:
2023
Sales for the second quarter of 2024 are $43.000, cost of goods sold under the FIFO method is $11,300, and operating expenses are
$5,700. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding.
$ 37,000
8,100
4,900
$ 24,000
6,000
$ 18,000
2023
2024
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter
$ 6,100 $ 6,900 $ 7,500 $ 8,300 $ 9,700
Required:
Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and
the six-month period ended June 30, 2023 and 2024.
Note: Round "Earnings per share" answers to 2 decimal places.
Answer is not complete.
Three Months Ended
June 30
2024
$ 26,000
9,300
5,300
$ 24,400
6,100
$ 18,300
Six Months Ended
June 30
2023
2024
S 43,400 x
S
1,000.00
Transcribed Image Text:Volata Company began operations on January 1, 2023. In the second quarter of 2024, it adopted the FIFO method of inventory valuation. In the past, it used the LIFO method. The company's interim income statements as originally reported under the LIFO method follow: Accounts Sales Cost of goods sold (LIFO) Operating expenses Income before income taxes Income taxes (25%) Net income Accounts Cost of goods sold (FIFO) 2023 2024 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter $ 33,000 $ 35,000 $ 39,000 $ 41,000 7,300 4,500 $ 23, 200 5,800 10,800 5,500 $ 24,700 6,175 $ 17,400 $ 18,525 6,300 4,300 $ 22,400 5,600 $ 16,800 Net income Earnings per share 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: 2023 Sales for the second quarter of 2024 are $43.000, cost of goods sold under the FIFO method is $11,300, and operating expenses are $5,700. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding. $ 37,000 8,100 4,900 $ 24,000 6,000 $ 18,000 2023 2024 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter $ 6,100 $ 6,900 $ 7,500 $ 8,300 $ 9,700 Required: Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2023 and 2024. Note: Round "Earnings per share" answers to 2 decimal places. Answer is not complete. Three Months Ended June 30 2024 $ 26,000 9,300 5,300 $ 24,400 6,100 $ 18,300 Six Months Ended June 30 2023 2024 S 43,400 x S 1,000.00
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