Sauerbraten Corp. reported 2007 sales ($ in millions) of $2,157 and a cost of goods sold of $1,827. The company uses the LIFO method for inventory valuation. It discloses that if the FIFO inventory valuation method had been used, inventories would have been $63.3 million and $56.8 million higher in 2007 and 2006, respectively. If Sauerbraten used the FIFO method exclusively, it would have reported 2007 gross profit closest to? a. $324. b. $330. c. $337.
Sauerbraten Corp. reported 2007 sales ($ in millions) of $2,157 and a cost of goods sold of $1,827. The company uses the LIFO method for inventory valuation. It discloses that if the FIFO inventory valuation method had been used, inventories would have been $63.3 million and $56.8 million higher in 2007 and 2006, respectively. If Sauerbraten used the FIFO method exclusively, it would have reported 2007 gross profit closest to? a. $324. b. $330. c. $337.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Sauerbraten Corp. reported 2007 sales ($ in
millions) of $2,157 and a cost of goods sold of
$1,827. The company uses the LIFO method for
inventory valuation. It discloses that if the FIFO
inventory valuation method had been used,
inventories would have been $63.3 million and
$56.8 million higher in 2007 and 2006, respectively.
If Sauerbraten used the FIFO method exclusively, it
would have reported 2007 gross profit closest to?
a. $324.
b. $330.
c. $337.
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