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. Net income Earnings per share Three Months Ended June Six Months Ended June 30 30 $ 2023 26,000 $ 2024 2023 26,000 $ 43,400 $ 2024 43,400
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. Net income Earnings per share Three Months Ended June Six Months Ended June 30 30 $ 2023 26,000 $ 2024 2023 26,000 $ 43,400 $ 2024 43,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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
$ 37,000
$ 39,000
$ 41,000
7,300
4,500
$ 23,200
5,800
10,800
5,500
$ 24,700
6,175
$ 17,400
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:
Net income
Earnings per share
6,300
4,300
$ 22,400
5,600
$ 16,800
$
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.
2023
8,100
4,900
$ 24,000
6,000
$ 18,000
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.
2023
2024
1st Quarter 2nd Quarter3rd Quarter4th Quarter1st Quarter
$ 6,100 $ 6,900 $ 7,500 $ 8,300
$ 9,700
Three Months Ended June Six Months Ended June
30
30
2024
26,000 $ 26,000
9,300
5,300
$ 24,400
6,100
$ 18,300 $ 18,525
2023
$43,400 $
2024
43,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F299a85d8-24b6-4362-b57d-b7ff9e1eb2d5%2F80acf0c5-e01d-462b-8965-96dae76682e8%2F1hlxg22_processed.jpeg&w=3840&q=75)
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
$ 37,000
$ 39,000
$ 41,000
7,300
4,500
$ 23,200
5,800
10,800
5,500
$ 24,700
6,175
$ 17,400
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:
Net income
Earnings per share
6,300
4,300
$ 22,400
5,600
$ 16,800
$
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.
2023
8,100
4,900
$ 24,000
6,000
$ 18,000
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.
2023
2024
1st Quarter 2nd Quarter3rd Quarter4th Quarter1st Quarter
$ 6,100 $ 6,900 $ 7,500 $ 8,300
$ 9,700
Three Months Ended June Six Months Ended June
30
30
2024
26,000 $ 26,000
9,300
5,300
$ 24,400
6,100
$ 18,300 $ 18,525
2023
$43,400 $
2024
43,400
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education