Income is to be evaluated under four different situations as follows:

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, $500$ units for $$15,000$; beginning inventory, $300$ units; purchases, $400$ units;

ending inventory, $200$ units; and operating expenses, $$4,000.$ The income tax rate is $30\%.$

Required:

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

inventory, $300$ units at $$11=$$$3,300$; purchases, $400$ units at $$12=$$$4,800.$ In Situations C and D $($prices falling$),$ assume the

opposite; that is$,$ beginning inventory, $300$ units at $$12=$$$3,600$; purchases, $400$ units at $$11=$$$4,400.$ 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.

Required $3$

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

inventory, $300$ units at $$11=$$$3,300$; purchases, $400$ units at $$12=$$$4,800.$ In Situations C and D $($prices falling$),$ assume

the opposite; that is$,$ beginning inventory, $300$ units at $$12=$$$3,600$; purchases, $400$ units at $$11=$$$4,400.$ Use periodic

inventory procedures.