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can someone please help me with those quesstions The following information pertains to the inventory of Parvin Company for Year 3: January1April1October1Beginninginventory500unitse$16Purchased2,800unitse$21Purchased1,200units&$22 During Year 3,
can someone please help me with those quesstions
The following information pertains to the inventory of Parvin Company for Year 3: January1April1October1Beginninginventory500unitse$16Purchased2,800unitse$21Purchased1,200units&$22 During Year 3, Parvin sold 3,825 units of inventory at $43 per unit and incurred $15,200 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $182,500, inventory of $8,000, common stock of $166,000, and retained earnings of $24,500. Exercise 5.6 (Algo) Part a Required a. Prepare income statements using FIFO and LIFO. Note: Round intermediate calculations and final answers to the nearest whole dollar amount. The Hat Store had the following series of transactions for Year 2: Required a. Determine the quantity and dollar amount of inventory at the end of the year, ossuming The Hat Store uses the FIFO cost flow assumption and keeps perpetual records. Note: Round your intermediate and final answers to 2 decimal places. Exercise 5-6 (Algo) Income tax effect of shifting from FIFO to LIFO LO 5-1 [The following information applies to the questions displayed below] The following information pertains to the inventory of Parvin Company for Year 3: \begin{tabular}{ll} January 1 & Beginning 1nventory 500 units e $16 \\ April 1 & Purchased 2,800 units $21 \\ October 1 & Purchased 1,200 units e $22 \end{tabular} During Year 3, Parvin sold 3,825 units of inventory at $43 per unit and incurred $15,200 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $182,500, inventory of $8,000, common stock of $166,000. and retained earnings of $24,500. Exercise 5-6 (Algo) Part b b. Determine the amount of Income tax that Parvin would pay using each cost flow method. A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a rainstorm. Prentiss also lost some of its accounting records. Prentiss must estimate the loss from the storm for insurance reporting and financial statement purposes. Prentiss uses the periodic inventory system. The following accounting information was recovered from the damaged records: The value of undamaged inventory counted was $78,821. Historically. Prentiss's gross margin percentage has been approximately 17 percent of soles. Required Estimate the following: a. Gross margin in dollars. b. Cost of goods sold in dollars. c. Ending inventory. d. Amount of lost inventory. [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company for Year 3 : During Year 3, Parvin sold 3,825 units of inventory at $43 per unit and incurred $15,200 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $182,500, inventory of $8,000, common stock of $166,000, and retained earnings of $24,500. kercise 5.6 (Algo) Part c Determine the cash flow from operating activities under FIFO and LIFO. ote: Round intermediate calculations and final answers to the nearest whole dollar amount. Cash outflows should be indicated ith minus sign Step by Step Solution
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