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A. 43089 B. 45% C. i need help with this please The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting.
A. 43089 B. 45% C. i need help with this please The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting. CANION CORPORATION Income Statement for 20x1 Sales Cost of Goods Sold *204.600 (18.600 unita @ $11.00 139,500 (18.600 units@ 7.50) Gross Profit $65,100 Selling and Admin Expeny 12,276 Depreciation 10.500 o *42.324 Taxes (30%) 12, 697 After tax Income 1929, 627 Operating Profit La Assume in 20x2 the same 18.600 Unit volume is maintained but that the sales price increases by 10%. Because of FIF inventory policy, old inventory will still be charged off at 17.5- per unit. Also Assume selling and Admin expenses will be 6% of Sales and deprecanon will be unchanged. Tax rate is 30% Compute. After tax income for 20x2. Aftertax Income- b. In part a. by what percent did after tax income increase as a result of a 10% increase in the sales price? Gain in After tax income- c. now assume that in 20x3 the volume remains constant at 18,600 units, but the sales price decreased 157 from its year 20x2 level. Also because of FIFO Inventory policy, cost of goods' sold reflects the inflationary Conditions of the prior year and is *8.00 per unit further assume selling and Admin expense will be 6% of sales and deprecation will be unchanged. The tax rate is 30% Compute the Aftertax incone Aftertax Income
A. 43089
B. 45%
C. i need help with this please
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