The management of Wildhorse Company SE is reevaluating the appropriateness of using its present inventory cost flow method. The company requests your help in determining the results of operations for 2017 if either the FIFO or the average-cost method had been used. For 2017, the accounting records show these data

Question 9 The management of Wildhorse Company SE is reevaluating the appropriateness of using its present inventorv cost flow method. The company requests vour heln in determining the results of operations for 2017 if either the FIFO or the average-cost method had been used. For 2017, the accounting records show these data: 2 WILDHORSE COMPANY SE Condensed Income Statement Inventories Beginning (11,360 units) Ending (21,300 units) Which cost flow method (FIFO or average-cost) produces the more meaningful inventory amount for the statement of financial position? 1 Purchases and Sales Total net sales (266,960 units) Total cost of goods purchased (276,900 units) 26,500 1,107,600 654,620 FIFO Average-cost method produces the more meaningful inventory amount. Purchases were made quarterly as follows. Units Quarter 1 2 3 Which cost flow method (FIFO or average cost) is more likely to approximate the actual physical flow of goods? 71,000 56,800 63,900 85,200 276,900 Unit Cost 2.10 2.30 2.40 2.60 Total Cost 149,100 130,640 153,360 221,520 654,620 4 method is more likely to approximate actual physical flow. Operating expenses were 146,600, and the company's income tax rate is 38%. Beginning Inventory Cost of Goods Available for Sale Cost of Goods Purchased Cost of Goods Sold Dividends Ending Inventory Gross Profit Income before Income Taxes Income Tax Expense Net Income / (LOSS) Operating Expenses Retained Earnings, January 1 Retained Earnings , December 31 Sales Revenues Total Expenses Total Sales Revenues How much more cash will be available for management under average-cost than under FIFO? Additional cash will be available for management