Income is to be evaluated under four different situations as follows: Complete the following sentence: Complete the following sentence regarding the relative effects on the cash position for each situation.

a$.$ Prices are rising:

$(1)$ Situation A: FIFO is used.

$(2)$ Situation B: LIFO is used.

b$.$ Prices are falling:

$(1)$ Situation C: FIFO is used.

$(2)$ Situation D: LIFO Is used.

The basic data common to all four situations are sales, $530$ units for $$15,900$; beginning inventory, $320$ units; purchases, $390$ units;

ending inventory, $180$ units; and operating expenses, $$3,100.$ The income tax rate is $40\%.$

Required:

Complete the following tabulation for each situation. In Situations A and $B($prices rising$),$ assume the following: beginning

Inventory, $320$ units at $$10=$$$3,200$; purchases, $390$ units at $$12=$$$4,680.$ In Situations $C$ and $D($prices falling$),$ assume the

opposite; that is$,$ beginning inventory, $320$ units at $$12=$$$3,840$; purchases, $390$ units at $$10=$$$3,900.$ Use periodic inventory

procedures.

Complete the following sentence:

Complete the following sentence regarding the relative effects on the cash position for each situation.

Complete this question by entering your answers in the tabs below.

Complete the following tabulation for each situation. In Situations A and $B($prices rising$),$ assume the following: beginning

inventory, $320$ units at $$10=$$$3,200$; purchases, $390$ units at $$12=$$$4,680.$ In Situations $C$ and $D($prices falling$),$ assume

the opposite; that is$,$ beginning inventory, $320$ units at $$12=$$$3,840$; purchases, $390$ units at $$10=$$$3,900.$ Use periodic

inventory procedures. $($Round your answers to nearest dollar amount.$)$

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