The following comparative information is available for Wildhorse Company for 2025. LIFO FIFO Sales revenue $81,000 $81,000 W Cost of goods sold 38,000 32,200 Operating expenses (including depreciation) 29,000 29,000 Depreciation 10,000 10,000 Cash paid for inventory purchases 36,240 36,240 Determine net income under each approach. Assume a 30% tax rate. LIFO Net income $ FIFO $

The following comparative information is available for Wildhorse Company for 2025. LIFO FIFO Sales revenue $81,000 $81,000 W Cost of goods sold 38,000 32,200 Operating expenses (including depreciation) 29,000 29,000 Depreciation 10,000 10,000 Cash paid for inventory purchases 36,240 36,240 Determine net income under each approach. Assume a 30% tax rate. LIFO Net income $ FIFO $

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....

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The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other…