Question
Wildhorse Company began operations in 2018 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2020, in accordance with other companies in its industry,
Wildhorse Company began operations in 2018 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2020, in accordance with other companies in its industry, Wildhorse changed its inventory pricing to FIFO. The pretax income data is reported below. Year Weighted-Average FIFO 2018 $379,600 $406,100 2019 405,000 421,500 2020 427,700 480,500 Assume a 35% tax rate in all years.
Show comparative income statements for Wildhorse Company, beginning with income before income tax, as presented on the 2020 income statement.
2020 2019 2018
Income before income tax
Income tax
Net income
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