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Problem 8 - 3 8 ( Algo ) ( LO 8 - 6 ) Volata Company began operations on January 1 , 2 0 2
Problem AlgoLO
Volata Company began operations on January In the second quarter of it adopted the FIFO
method of inventory valuation. In the past, it used the LIFO method. The company's interim income statements
as originally reported under the LIFO method follow:
If the FIFO method had been used since the company began operations, cost of goods sold in each of the
previous quarters would have been as follows:
Sales for the second quarter of are $ cost of goods sold under the FIFO method is $ and
operating expenses are $ The effective tax rate remains percent. Volata Company has shares of
common stock outstanding.
Required:
Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the
threemonth period and the sixmonth period ended June and
Note: Round "Earnings per share" answers to decimal places.
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