1. Couture Co. has the following LIFO layers:

2018 - 600 units @ $10;

2019 - 400 units @ $12;

2020 - 550 units @ $15;

2021 - 200 units @ $16; 2022 - 1,500 units @ $17.

Couture sells 1,400 units in 2022 at $25. Compute Coutures Cost of Goods Sold under LIFO periodic.

2. Compute Coutures gross profit under LIFO periodic.

3. For #1, assume all the same information, except Coutures 2022 LIFO layer is 100 units @17. Compute Coutures Cost of Goods Sold under LIFO periodic.

4. For #3, Compute Coutures gross profit under LIFO periodic.

5. Comparing the two scenarios, does Couture have greater gross profit when a) the only layer sold is the 2022 layer (i.e., scenario from #1) or b) when multiple layers are liquidated (i.e., scenario from #3). Write A or B for your answer.

6. Consider your answer to #5. By how much does the larger gross profit exceed the smaller?

7. Assuming the tax rate is 40%, how much will the tax bill increase under the scenario producing the larger gross profit?

8. Couture has the following items: Service Revenue ($45K), increase in A/R ($15K), increase in Unearned Revenue ($8K), decrease in prepaid expenses ($13K). How much cash did Couture collect from customers?

9. Couture has the following items: common stock issued ($200K), increase in N/P ($50K), decrease in B/P ($70K), increase in treasury stock ($25K), decrease in long-term investments ($55K), increase in goodwill ($14K). What is Coutures net cash from financing activities?

10. Couture issued common stock in exchange for land. Which section of the statement of cash flows reports this transaction?