Thank you very much. This is great now. Appreciate all your help and revisions. Thank you once again! You did a wonderful job.
EXERCISE 8.4
Effects of Different Cost Flow Assumptions
Gable, Inc., is a provider of home furnishings. The company uses the FIFO inventory method. The following information was taken from the company’s recent financial statements (dollar amounts are in thousands):
The financial statements also revealed that had Gable been using LIFO,its cost of goods sold would have been $1,865,000. The company’s income taxes and payments amount to approximately 40 percent of income before taxes.
Explain how LIFO can result in a higher cost of goods sold. Would you expect LIFO to result in a greater or lesser valuation of the company’s ending inventories? Defend your answer.
Assuming that Lollar had been using LIFO, compute the following amounts for the current year. Show your supporting computations, with dollar amounts in thousands.
Income before taxes
Income taxes expense (which are assumed equal to income taxes actually paid)
Net income
Net cash provided by operating activities
A) Problem 8.4A Debit Cost of Goods Sold $1,560 (part a, LIFO method).
&
B) Problem 8.4BDebit Cost of Goods Sold $120 (part a, LIFO method).
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more