Business, 25.11.2021 06:10, celinarubio77
Vance Company reported the following summarized annual data at the end of 2020:
Sales revenue $1,000,000
Cost of goods sold 600,000
Gross margin 400,000
Operating expenses 250,000
Income before income taxes $150,000
Based on an ending FIFO inventory of $250,000. The income tax rate is 40%. The controller of the company is considering a switch from FIFO to LIFO. He has determined that on a LIFO basis, the ending inventory would have been $180,000.
a. Re-state the summary information on a lifo basis.
b. What effect, if any, would the proposed change have on Vance’s income tax expense, net income, and cash flows?
c. If you were the owner of business, what would you be to this proposed change?
Answers: 2
Other questions on the subject: Business
Business, 22.06.2019 03:00, zelds63481
Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d. select short-term savings instruments to lock in earnings at a current high rates.
Answers: 1
Business, 22.06.2019 10:50, hsjsjsjdjjd
Suppose that a firm is considering moving from a batch process to an assembly-line process to better meet evolving market needs. what concerns might the following functions have about this proposed process change: marketing, finance, human resources, accounting, and information systems?
Answers: 2
Business, 22.06.2019 11:00, mateoperkins
What is the advantage of developing criteria for assessing the effectiveness of business products and processes? a. assessment criteria are answers. b. assessment criteria are inexpensive. c. assessment criteria provide you with a list of relevant things to measure. d. assessment criteria provide you with a list of people to contact to learn more about process mentoring.
Answers: 3
Business, 22.06.2019 19:50, joel4676
The new york company produces high quality chairs. variable manufacturing overhead is applied at a standard rate of $12 per machine hour. each chair requires a standard quantity of six machine hours. production for the month totaled 4,000 units. calculate: the standard cost per unit for variable overhead. select one: a. $130,000 b. $192,000 c. $90,000 d. $100,000
Answers: 2
Do you know the correct answer?
Vance Company reported the following summarized annual data at the end of 2020:
Sales revenue $1,0...
Questions in other subjects:
Mathematics, 04.06.2020 19:11
Computers and Technology, 04.06.2020 19:11
History, 04.06.2020 19:11
