Question
Item 5 Nueva Company reported the following pretax data for its first year of operations. Net sales 7,370 Cost of goods available for sale 5,720
Item 5
Nueva Company reported the following pretax data for its first year of operations.
| Net sales | 7,370 |
|---|---|
| Cost of goods available for sale | 5,720 |
| Operating expenses | 1,548 |
| Effective tax rate | 25% |
| Ending inventories: | |
| If LIFO is elected | 625 |
| If FIFO is elected | 800 |
What is Nueva's net income if it elects FIFO?
Note: Round your intermediate and final answer to the nearest whole dollar amount.
Multiple Choice
$902
$676
$727
$545
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Financial Accounting in an Economic Context
Authors: Jamie Pratt
8th Edition
9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292
