Below is information for Lesleys bookstores transactions related to the purchase and sale of Lesley University shirts for 2012.

Cost of goods available for sale

Date		# of units	Cost	Total
Jan 1	Beg Inventory	200	$10	$2,000
Mar 14	Purchase	350	$15	$5,250
July 30	Purchase	450	$20	$9,000
Oct 26	Purchase	100	$25	$2,500

Retail Sales of Goods

Date		# of Units	Selling Price
Jan 10	Sale	150	$40
Mar 15	Sale	300	$40
Oct 5	Sale	430	$40

Using the information above, calculate the cost assigned to the ending Inventory and Cost of Goods Sold using each of the following inventory cost methods

1. FIFO (first-in, first-out)
2. LIFO (last-in, last-out)

Compute the gross profit for each method. Which method yields the highest profit?

Assuming operating expenses of $10,000 and an income tax rate of 30%.

Which method would result in lower taxes?

What is the difference in income taxes?

Which method results in a higher net income?

What is the difference in net income?

Compute the Days Sales Outstanding for each of the different methods.