The following information pertains to the inventory of Parvin Company:Jan. 1 Beginning inventoryPurchasedPurchasedApr. 1Oct. 1During the year, Parvin sold 3,485 units of inventory at $45 per unit and incurred $15,700 of operating expenses. Parvin currently usesthe FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate.Parvin started the period with cash of $200,600, inventory of $6,400, common stock of $183,000, and retained earnings of $24,000.Requireda. Prepare income statements using FIFO and LIFO.b. Determine the amount of income tax that Parvin would pay using each cost flow method.c. Determine the cash flow from operating activities under FIFO and LIFO.PARVIN COMPANYIncome StatementsFor the Year Ended December 31FIFOComplete this question by entering your answers in the tabs below.SalesCost of goods soldGross marginRequired A Required B Required CPrepare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearestwhole dollar amount.)Operating expensesIncome before taxIncome tax expenseNet income400 units @ $162,600 units$211,100 units @ $22$156,82585,20071,625✔ 15,70055,92516,778$39,147Answer is complete but not entirely correct.@ @ @LIFO$156,82579,75577,07015,70061,37018,411$42,959

The inventory can be valued using various methods as LIFO and FIFO. LIFO stands Last In First Out…

following information pertains to the inventory of Parvin Company: an. 1 Beginning inventory pr. 1 Purchased Purchased ct. 1 400 units @ $16 2,600 units @ $21 1,100 units @ $22 ing the year, Parvin sold 3,485 units of inventory at $45 per unit and incurred $15,700 of operating expenses. Parvin currently uses FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. vin started the period with cash of $200,600, inventory of $6,400, common stock of $183,000, and retained earnings of $24,000. quired Prepare income statements using FIFO and LIFO. Determine the amount of income tax that Parvin would pay using each cost flow method. Determine the cash flow from operating activities under FIFO and LIFO. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. PARVIN COMPANY Income Statements equired A Required B Required C repare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearest hole dollar amount.)

following information pertains to the inventory of Parvin Company: an. 1 Beginning inventory pr. 1 Purchased Purchased ct. 1 400 units @ $16 2,600 units @ $21 1,100 units @ $22 ing the year, Parvin sold 3,485 units of inventory at $45 per unit and incurred $15,700 of operating expenses. Parvin currently uses FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. vin started the period with cash of $200,600, inventory of $6,400, common stock of $183,000, and retained earnings of $24,000. quired Prepare income statements using FIFO and LIFO. Determine the amount of income tax that Parvin would pay using each cost flow method. Determine the cash flow from operating activities under FIFO and LIFO. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. PARVIN COMPANY Income Statements equired A Required B Required C repare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearest hole dollar amount.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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Bloom Company had beginning unadjusted retained earnings of 400,000 in the current year. At the beginning of the current year, Bloom changed its inventory method from LIFO to FIFO, and the cumulative effect (net of taxes) of this change was 28,000. In addition, Bloom earned net income of 150,000 and paid dividends of 30,000 in the current year. Prepare Blooms retained earnings statement for the current year.
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The following information pertains to the inventory of Parvin Company Jan. 1 Apr. 1 Oct. 1 Beginning inventory Purchased Purchased During the year, Parvin sold 3,400 units of inventory at $44 per unit and incurred $15.900 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate Parvin started the period with cash of $116,800, inventory of $7.200, common stock of $100,000, and retained earnings of $24.000 Required a. Prepare income statements using FIFO and LIFO. b. Determine the amount of income tax that Parvin would pay using each cost flow method. c. Determine the cash flow from operating activities under FIFO and LIFO Complete this question by entering your answers in the tabs below. Required A Required B 400 units @ $18 2,700 units $23 900 units • $24 Required C Prepare Income statements using FIFO and LIFO. (Round intermediate calculations and final ariswers to the…
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Choose the correct.Rouge Company’s $250,000 net income for the quarter ended September 30 included the following after-tax items:∙ A $20,000 cumulative effect loss resulting from a change in inventory valuation method made on September 1.∙ $0 of the $60,000 annual property taxes paid on February 1.For the quarter ended September 30, the amount of net income that Rouge should report isa. $235,000b. $250,000c. $255,000d. $270,000
Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2021. Baker has an effective income tax rate of 35% and 100,000 shares of common stock issued and outstanding. The following additional information is available: Cost of goods sold LIFO $ 40,000 $ 75,000 Cost of goods sold FIFO Prior to 2021 1st quarter 2021 $ 10,000 $ 18,000 Net income before effect of accounting change: 1st quarter 2020 1st quarter 2021 Multiple Choice O Assuming Baker makes the change in the first quarter of 2021, compute net income per common share. O O $4.92 $4.95. $5.00 $5.05. $300,000 $500,000 $5.28. After-tax Difference Difference $35,000 $22,750 $ 5,200 $ 8,000
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