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The following information pertains to Hernandez Company for 2018. 1.900 units at $ 50 per unit Beginning Inventory Units Purchased Ending inventory consisted of
The following information pertains to Hernandez Company for 2018. 1.900 units at $ 50 per unit Beginning Inventory Units Purchased Ending inventory consisted of 500 units @ 1500 units @ $21 $12 100 units. Hernandez sold per unit per unit All purchases and sales were made with cash. Beginning inventory purchased before year started. a b. C. REQUIRED Compute the gross margin for Hemandez Company using the following cost flow assurbptions: (1) FIFO, (2) LIFO, and (3) weighted average. What is the dollar value of ending inventory for FIFO and Weighted Average? Determine the cash flow from operating activities in 2018, using each of the three cost flow assumptions listed in Requirement a. Ignore the effect of income taxes. Explain why these cash flows have no differences.
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