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Saved Help E7-8 Evaluating the Effects of Inventory Methods on Income from Operations, Income Taxes, and Net Income (Periodic) [LO 7-3) Courtney Company uses a

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Saved Help E7-8 Evaluating the Effects of Inventory Methods on Income from Operations, Income Taxes, and Net Income (Periodic) [LO 7-3) Courtney Company uses a periodic inventory system. The following data were available: beginning inventory 1,500 units at $25: purchases, 3,000 units at $28; operating expenses (excluding income taxes). $94,000; ending inventory per physical count at December 31, 1,000 units; sales price per unit. $75; and average income tax rate, 30%. Required: 1. Prepare income statements under the FIFO, LIFO, and weighted average costing methods. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Inventory Costing Method Weighted FIFO L IFO Average Income Statement Units DOES NO Sales Revenue Cost of Goods Sold" Gross Proft Operating Expenses Income from Operations Income Tax Expense Net Income 00 $ 0 $ 0 $ Units FIFO LIFO Weighted Average Cost of Goods Sold Equation: Beginning Inventory Purchases Required: 1. Prepare income statements under the FIFO, LIFO, and weighted average costing methods. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Inventory Costing Method FIFO LIFO | Welghted Average Income Statement Units Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense Net Income 0 0 $ 0 $ 0 $ FIFO LIFO Weighted Average "Cost of Goods Sold Equation: Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold 0 0 0 0 OS 0 $ O S 0 $ 0 $ 0 Seved 2-a. Between FIFO and LIFO, which method is preferable in terms of maximizing income from operations, if costs are rising? OLIFO O FIFO 2-b. Between FIFO and LIFO, which method is preferable in terms of minimizing income taxes, if costs are rising? OLIFO FIFO 3-a. Between FIFO and LIFO, which method is preferable in terms of maximizing income from operations, if costs are falling? OLIFO FIFO 3-b. Between FIFO and LIFO, which method is preferable in terms of minimizing income taxes, if costs are falling? OLIFO OFIFO

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