??(W) ?? |siti??? ?hm?? ???? ????????,???,??, ??,???,???.1??,????,??.1 -: ????? ??????? : V?????? |y??(P). 017 Using different cost flow assumption, the Houston Electronics company recognizes different amount of net income. The following is a condensed comparative income statement for Houston Electronics company HOUSTON ELECTRONICS Condensed Income Statements FIFO $18,500 1,000 11,000 12,000 5,800 6,200 12.300 9,000 3,300 LIFO $18,500 1,000 11,000 12,000 5,000 7,000 11,500 9,000 Average-Cost 18,500 Sales revenue Beginning inventory Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross prott Operating expenses Income before income taxes Income tax expense (30%) Net income 1,000 11,000 12,000 5,400 6,600 11,900 9,000 2.900 870 2.500 990 750 s 2,310 s 1,750 s 2,030 Which of the following statement is FALSE? A. In a period of inflation. FIFO produces a higher net income because low er unit costs of the first units purchased are matched against revenue B. In a period of inflation. LIFO produces a lower net income because higher unit costs of the last goods purchased are matched against revenue C. In a period of deflation (prices fall), FIFO produces a higher net income D. Regardless of whether prices are rising or falling, average-cost produces net income between FIFO and LIFO iffany Company's management mants to maintain a nminimum monthly cash balance of