Question
During 2014, Williamson Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2013 and 2012 (Williamsons first year of operations) under FIFO was
During 2014, Williamson Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2013 and 2012 (Williamsons first year of operations) under FIFO was $166,800 and $197,500, respectively. Pretax income using weighted-average pricing in the prior years would have been $160,500 in 2013 and $179,800 in 2012. In 2014, Williamson Company reported pretax income (using weighted-average pricing) of $215,900. Show comparative income statements for Williamson Company, beginning with Income before income tax, as presented on the 2014 income statement. (The tax rate in all years is 29%.)
2014 2013 2012 Income before income tax Income tax Net Income
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