Question
The following pertains to Baxter Comany for 2013 : Beginning Inventory : 90 units at $15 Units Purched: 320 units at $19 Ending inventory consisted
The following pertains to Baxter Comany for 2013 : Beginning Inventory : 90 units at $15 Units Purched: 320 units at $19
Ending inventory consisted of 40 units. Baxter sold 370 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 asumptions: (1) FIFO, (2) LIFO, (3) Weighted Average
B) What is the dollar amount of difference in net income between using FIFO versus LIFO?
C) Determine the cash flow from operating activities, using each of the three cost flow assumptions listed in requirement a. Igmore the effect of income taxes. Explain why these cash flows have no difference.
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Auditing Cases An Interactive Learning Approach
Authors: Steven M Glover, Douglas F Prawitt
4th Edition
0132423502, 978-0132423502
