Question

At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $ 16 per unit:
Required:
(d) Of FIFO and LIFO, which method produces the more favorable cash flow? Explain.

Answer 1

    Average     FIFO         LIFO                   Specific        

                                                                                              Identification

Sales                             $ 3,840      $3,840       $3,840              $ 3,840                        

Less: Cost of                 2,256         2,040         2,560                 2,060

Goods Sold

Gross Profit                  $ 1,584        $1,800       $1,280               $ 1,780      

The income statement is one of the most common and important financial statements. The income statement, also known as the income statement (P&L), summarizes all income and expenses over a period of time, including the cumulative impact of income, profits, expenses, and loss transactions.

The basic formula for the income statement is Income - Expenses = Net Income. This simple equation tells you if your company is profitable.

Learn more about Income statements here brainly.com/question/24498019

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