Problem 6-4A

The management of Sheridan Company asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2017, the accounting records show these data.

Inventory, January 1 (10,110 units)		$ 38,418
Cost of 125,200 units purchased		526,754
Selling price of 89,260 units sold		723,200
Operating expenses		117,920

Units purchased consisted of 37,970 units at $4.00 on May 10; 58,870 units at $4.20 on August 15; and 28,360 units at $4.50 on November 20. Income taxes are 25%. (a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO. (Round answers to 0 decimal places, e.g. 5,125.)

Sheridan Company Condensed Income Statements choose the accounting period For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017December 31, 2017
	FIFO		LIFO
select an income statement item Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues	$enter a dollar amount		$enter a dollar amount
	enter a dollar amount		enter a dollar amount
	enter a dollar amount		enter a dollar amount
	enter a subtotal of the two previous amounts		enter a subtotal of the two previous amounts
	enter a dollar amount		enter a dollar amount
	enter a total amount for section one		enter a total amount for section one
	enter a total amount for the first part		enter a total amount for the first part
	enter a dollar amount		enter a dollar amount
	enter a total amount for two parts		enter a total amount for two parts
	enter a dollar amount		enter a dollar amount
	$enter a total net income or loss amount		$enter a total net income or loss amount