Pronto Inc. is a major producer of printing equipment. Pronto uses a LIFO cost-flow assumption for inventories. The company's tax rate is 35%/ Below is selected financial data for the company.

Pronto, Inc.

Selected Financial Data

December 31, 2013 2012 2011

Inventories (LIFO) $48,000 $42,000 $45,000

Total Assets 400,000 380,000 375,000

Sales 550,000 450,000

COGS 330,000 300,000

Net Income 35,000 28,000

Required

a. The excess of FIFO over LIFO inventories was $5,000 on December 31st, 2013, $10,000 on December 31st 2012, and $12,000 on December 31st, 2011. Compute the COGS for Pronto Inc. for years 2013 and 2012 assuming that it had used a FIFO assumption.

b. Compute the inventory turnover ratio for Pronto, Inc. for years 2013 and 2012 using a FIFO cost flow assumption.

c. Compute the Net Income for years 2013 and 2012 based assuming that Pronto, Inc. had used the FIFO method of accounting for inventories.