H M N o P 0 R S B D E G Task 3: Sophia is now familiar with the three cost flow assumptions, but she is unclear about the impact of these HHEC assumptions on HHEC.com's net income. She therefore provides you with HHEC.com's projected annual sales revenue, operating expenses, and an income tax rate, and asks you to use the information from Task 2 to calculate the company's projected gross profit, income before income taxes, income tax expense, and net HAPPY HOME Environmental Cleaning income. 1 2 Sales 172,185 4 Sales returns and allowances 6,140 5 Sales discounts 5,790 6 Sales salaries expense 6,030 7 Advertising expense 10,860 8 Office Salaries expense 21,020 9 Rent expense 8,100 10 Insurance expense 1,910 11 Tax rate = 40% 12 Cost of goods sold 13 LIFO 15,300 14 FIFO 11,700 15 Average Cost 13,520 16 17 18 ANSWER LIFO FIFO Average Cost 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Unit 2-Challenge 4-Task 3 During the month of February Year 3, HHEC.COM made the following purchases Beginning Inventory, February 1 February 10 Purchase February 21 Purchase February 28 Purchase Total Units 200 300 400 100 1,000 Unit Cost 90 100 110 120 Total Cost 18,000 30,000 44,000 12.000 104,000