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The following is the Balance Sheet and Income Statement for Ella Corp: LIFO BALANCE SHEET AT 12/31/2024: Assets Liabilities & Owners Equity Cash and Cash

The following is the Balance Sheet and Income Statement for Ella Corp:

LIFO BALANCE SHEET AT 12/31/2024:

Assets

Liabilities & Owners Equity

Cash and Cash Equivalents

$1,000

Accounts Payable

$3,000

Accounts Receivable, Net

$1,000

Notes Payable

$4,000

Inventory

$8,000

Common Stock

$13,000

PPE, Net

$20,000

Retained Earnings

$10,000

TOTAL ASSETS

$30,000

TOTAL LIAB. & OWNERS EQUITY

$30,000

LIFO INCOME STATEMENT FOR THE YEAR ENDING 12/31/2024:

Sales Revenue

$60,000

CGS

($40,000)

Gross Margin

$20,000

Other Gains/(Losses)

($11,000)

Pre-Tax Income

$9,000

Tax Expense (35%)

($3,150)

Net Income

$5,850

From its inception, Ella Corp. used LIFO to value its inventory. The LIFO reserve at 1/1/2024 is $500 and the LIFO reserve at 12/31/2024 is $1,200. You may assume that taxes are always 35% and all taxes are paid in cash.

___________________

If, from its inception, Ella Corp. has used FIFO to value its inventory instead of LIFO, what would Ella Corp. reports as 12/31/2024 Common Stock?

Question 29 options:

$11,000

$13,000

$14,000

$12,000

Question 30 (2 points)

The following is the Balance Sheet and Income Statement for Ella Corp:

LIFO BALANCE SHEET AT 12/31/2024:

Assets

Liabilities & Owners Equity

Cash and Cash Equivalents

$1,000

Accounts Payable

$3,000

Accounts Receivable, Net

$1,000

Notes Payable

$4,000

Inventory

$8,000

Common Stock

$13,000

PPE, Net

$20,000

Retained Earnings

$10,000

TOTAL ASSETS

$30,000

TOTAL LIAB. & OWNERS EQUITY

$30,000

LIFO INCOME STATEMENT FOR THE YEAR ENDING 12/31/2024:

Sales Revenue

$60,000

CGS

($40,000)

Gross Margin

$20,000

Other Gains/(Losses)

($11,000)

Pre-Tax Income

$9,000

Tax Expense (35%)

($3,150)

Net Income

$5,850

From its inception, Ella Corp. used LIFO to value its inventory. The LIFO reserve at 1/1/2024 is $500 and the LIFO reserve at 12/31/2024 is $1,200. You may assume that taxes are always 35% and all taxes are paid in cash.

___________________

If, from its inception, Ella Corp. has used FIFO to value its inventory instead of LIFO, what would Ella Corp. reports as 12/31/2024 Retained Earnings?

Question 30 options:

$10,780

$10,000

$11,780

$12,000

Question 31 (2 points)

The following is the Balance Sheet and Income Statement for Ella Corp:

LIFO BALANCE SHEET AT 12/31/2024:

Assets

Liabilities & Owners Equity

Cash and Cash Equivalents

$1,000

Accounts Payable

$3,000

Accounts Receivable, Net

$1,000

Notes Payable

$4,000

Inventory

$8,000

Common Stock

$13,000

PPE, Net

$20,000

Retained Earnings

$10,000

TOTAL ASSETS

$30,000

TOTAL LIAB. & OWNERS EQUITY

$30,000

LIFO INCOME STATEMENT FOR THE YEAR ENDING 12/31/2024:

Sales Revenue

$60,000

CGS

($40,000)

Gross Margin

$20,000

Other Gains/(Losses)

($11,000)

Pre-Tax Income

$9,000

Tax Expense (35%)

($3,150)

Net Income

$5,850

From its inception, Ella Corp. used LIFO to value its inventory. The LIFO reserve at 1/1/2024 is $500 and the LIFO reserve at 12/31/2024 is $1,200. You may assume that taxes are always 35% and all taxes are paid in cash.

___________________

If, from its inception, Ella Corp. has used FIFO to value its inventory instead of LIFO, what would Ella Corp. reports as 12/31/2024 Total Liabilities and Owners' Equity?

Question 31 options:

$30,000

$31,780

$30,500

$30,780

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