The following information pertains to Baxter Company for 2014.

Beginning inventory 90 units @ $15

units purchased 320 units @$19

Ending inventory consisted of 100 units. Baxter sold 310 units at $30 each. All purchases and sales were made with cash.

a. Compute the gross margin for Baxter Company using the following cost flow assumptions: (1) FIFO, (2) LIFO and (3) weighted average.

b. What is the dollar amount of difference in net income between using FIFO versus LIFO? ( ignore income tax considerations.)

c. Determine the cash flow from operating activities, using each of the three cost flow assumptions listed in Part A. Ignore the effect of income taxes.

cash flows from operating activites- FIFO/ LIFO/ weighted av.

cash inflow from customers- FIFO/LIFO/weighted av.

cash outflow for inventory- FIFO/LIFO/weighted av.

net cash flow from operating activities- FIFO/LIFO/weighted av.