Question

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Prepare an income statement and a year-end SFP, assuming the compary applies: (1) the FIFO cost formula and (2) the weighted average cost formula. (Enter amounts in thousands. Uist Current Assets in order of liquldity. Round weighted overage cost and final answers to 2 dedmal places, es. 52.75J Prepare an incorne statement and a year-end SFP, assuming the company applies: (1) the FIFO cost formula and (2) the weighted average cost formula. (Enter amounts in thousands. List Current Assets in order of liquidity. Round weighted average cost and final answers to 2 decimal places, e8 52.75. Astro Languet established Bramble Products Ca, as a sole proprietorship on January 5,2023 . At the company's year end of December 31,2023, the accounts had the following balances (in thourands): A count of ending imventory on December 31,2023 , showed there were 4,400 units on hand. Astro is now preparing financial statements for the year. He is aware that inventory may be costed using the fiFO or weighted average cost formula He is unsure of which one to use and asks for your assistance. In discussions with Astro, you learn the following: 1. Suppliers to Bramble Products provide goods at regular prices as long as Bramble Products' current ratio is at least 2 to 1 . If this ratio is lower, the suppliers increase their price by 10% to compenlsate for what they consider to be a sutistantial credit. risk. 2. The terms of the long-term bank loan include the banks ability to demand immediate repayment of the loan if the debt to total assets ratio is greater than 45%. 3. Astro thinis that, for the company to be a success, the rate of return on total assets should be at least 30%. 4. Astro has an agreement with the company's only employee that, for each full percentage point above a 25% rate of return on total assets, she will be given an additional one day off with pay in the following year