Dixon Inc., needs your help to calculate their tax expense. They use the FIFO method for inventory cost flow and have also given you the following information for the year: Sales were $90,000, cost of goods sold was $52,000, other operating expenses were $28,000. Dixons tax rate is 30%. How much do they owe in taxes?

		$3,000
		$7,000
		$10,000
		$11,400
		$27,000 In an inflationary environment, which inventory cost flow method will produce the lowest amount of cost of goods sold? A) FIFO B) Weighted Average. C) All methods will produce the same amount of cost of goods sold. D) LIFO The correct answer is QUESTION 21 Borden Company paid cash to purchase two identical inventory items. The first purchase cost $18.00 cash and the second cost $19.00 cash. Borden sold one inventory item for $30.00 cash. Based on this information alone: A. cash flow from operating activities is $11.50 assuming a weighted average cost flow. B. cash flow from operating activities is $12.00 assuming a FIFO cost flow. C. cash flow from operating activities is $11.00 assuming a LIFO cost flow. D. the amount of cash flow from operating activities is not affected by the cost flow method. The correct answer is

Dixon Inc., needs your help to calculate their tax expense. They use the FIFO method for inventory cost flow and have also given you the following information for the year: Sales were $90,000, cost of goods sold was $52,000, other operating expenses were $28,000. Dixons tax rate is 30%. How much do they owe in taxes?

		$3,000
		$7,000
		$10,000
		$11,400
		$27,000