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The Mary Poppins Company began business on 1/1/2016 when they sold 5000 shares of stock for $46,000 During 2016 Mary Poppins: a) on 1/13/2016 Mary
The Mary Poppins Company began business on 1/1/2016 when they sold 5000 shares of stock for $46,000 | ||||||||
During 2016 Mary Poppins: | ||||||||
a) on 1/13/2016 Mary Poppins purchased 100 umbrellas for $14 each | ||||||||
b) on 7/1/2016 Mary Poppins purchased 400 umbrellas for $15 each | ||||||||
c) On 10/1/2016 Mary Poppins purchased 300 umbrellas for $16 each | ||||||||
On December 31, 2016 a count of the warehouse showed 270 umbrellas | ||||||||
On average Mary Poppins sold umbrellas for $23 each | ||||||||
At the end of the year Mary Poppins had no receivables or payables. | ||||||||
Mary Poppins is in the 40% tax rate | ||||||||
PART 1: FOR 2016 DETERMINE | ||||||||
A) COST OF GOODS SOLD FOR MARY POPPINS IF SHE USES FIFO | ||||||||
B) ENDING INVENTORY FOR MARY POPPINS IF SHE USES FIFO | ||||||||
C) NET INCOME IF MARY POPPINS USES FIFO (DON'T FORGET ABOUT TAXES) | ||||||||
D) ENDING CASH IF MARY POPPINS USES FIFO | ||||||||
E) COST OF GOODS SOLD FOR MARY POPPINS IF SHE USES LIFO | ||||||||
F) ENDING INVENTORY FOR MARY POPPINS IF SHE USES LIFO | ||||||||
G) NET INCOME IF MARY POPPINS USES LIFO (DON'T FORGET ABOUT TAXES) | ||||||||
H) ENDING CASH IF MARY POPPINTS USES LIFO | ||||||||
I) HOW MUCH DID MARY POPPINS SAVE BY USING LIFO INSTEAD OF FIFO FOR HER UMBRELLAS |
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