1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
hodyreva [135]
3 years ago
11

Nu Company reported the following pretax data for its first year of operations. Net sales 2,910 Cost of goods available for sale

2,430 Operating expenses 730 Effective tax rate 30% Ending inventories: If LIFO is elected 870 If FIFO is elected 1,230 What is Nu's net income if it elects LIFO?
Business
2 answers:
guapka [62]3 years ago
6 0

Answer:

Ending inventory is $464

Explanation:

The question is to determine Nu Company's net income based on the Last In First Out (LIFO) method of stock valuation.

Step 1: It should be noted that the cost of goods available for sale is usually the total of opening inventory and purchases of inventory.

Since, the cost of goods available is already given in the question, then Cost of Goods Sold which is required for gross profit or income will be obtained as follows:

Step 2: Cost of Goods Sold= Cost of Goods available - Closing Inventory

At LIFO method, then closing inventory will be $870

Therefore, Cost of Goods Sold = $2,430 - $870= $1,560

Step 3: Now the Net Income can be calculated (Net Income before Tax)

= Net sales - COGS (calculated in step 2)- Operating expenses

$2,910- $1,560-$730

= $620

Step 4: Calculate the Net income after tax

= Net Income before taxation * (1 - given tax rate); tax rate is 30%

= $620 x (70%)

=$620 *0.70

= $464

kozerog [31]3 years ago
5 0

Answer:

$434

Explanation:

Net sales                     = $2,910

-Cost of goods sold    = $1,560 (Working)

=Gross profit                = $1350

-Operating expenses  = $730

=Profit before Tax        = $620

-Tax 30%                      = $186

=Net Profit/Net Income= $434

<u>Working</u>

Cost of goods sold = Cost of goods available for sale - Closing Inventory if LIFO is elected

Cost of goods sold = 2,430 - 870 = 1560

You might be interested in
The price and quantity determined in a market when the supply equals the demand, the market is in the state of
astra-53 [7]

Answer:

Market equilibrium

Explanation:

The market equilibrium is the price at which the quantity demanded and the quantity supplied are intersected to each other

The intersection could be done by supply and demand curves

Moreover, there is a positive relationship between the price and quantity supplied while for quantity demanded it has an inverse relationship between the price and quantity demanded

6 0
3 years ago
Country a is characterized by tightly knit social groups and it places importance on belonging to​ organizations, families, and
eduard
<span>Country is characterized by tightly knit social groups and it places importance on belonging to​ organizations, families, and other​ groups, it has​ collectivism.
</span>In cultures in which collectivism predominates, group decisions are valued and accepted.
<span>In individualism on the other hand, the primary concern is for themselves and their families.</span>
4 0
3 years ago
The total sales of a product, by all competitors in the industry, is:____.a. highest in the introduction stage.b. lowest in the
irina1246 [14]

Answer:

The total sales of a product, by all competitors in the industry, is:____

e. lowest in the market introduction stage.

Explanation:

The product life cycle refers to the time period when a product is first introduced to a market until it exits the market.  There are four main stages in a product life cycle.  They include introduction, growth, maturity, and decline.  It is during the introduction phase that the total sales are lowest.  The low sales are witnessed again during the latter stage of decline.   The highest sales are achieved during the maturity stage.

3 0
3 years ago
What role do individuals play in a capitalist system?
VMariaS [17]

Answer:

Explanation:

INCAPITALIST SYSTEM ,INDIVIDUALS ARE KEY BECAUSE THE GOVERMENT DOES NOT CONTROL ECONOMY .ALL ECONOMIC DECISIONS AND ACTIONS ARE CONTROLLED.......

3 0
3 years ago
Palin Inc., an electronics manufacturer, is headquartered in Texas. The firm shifted its operations from Texas to China due to l
Fittoniya [83]

Answer: Offshoring.

Explanation:

Palin Inc., is involved in Offshoring by taking their production operations from the U.S of America to China where they can get cheap and quality labor. Offshoring occurs when a production company changes their industry site to a new location, which posseses quality and cheaper labor than their original location.

3 0
3 years ago
Other questions:
  • On July 15, 2018, the Nixon Car Company purchased 1,100 tires from the Harwell Company for $50 each. The terms of the sale were
    6·1 answer
  • Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2021, and Arctic rec
    12·1 answer
  • LO 4.7In a job order cost system, factory wage expense is debited to which account?
    5·1 answer
  • Coronado Company's records indicate the following information for the year:
    12·1 answer
  • Because of _____, an increase in government spending results in a larger increase in real GDP. Please choose the correct answer
    8·1 answer
  • Should all managers must always aim for the top position?why or why not
    14·2 answers
  • On June 10, Pais Company purchased $9,000 of merchandise from McGiver Company, terms 3/10, n/30. Pais Company pays the freight c
    8·1 answer
  • Normative account captures what people often do when they are first introduced to computer and
    9·1 answer
  • A high-tech computer company reported the following information in a recent annual report (all dollar amounts are expressed in m
    13·1 answer
  • Developmentalists believe that life-span development is ______ because it consists of interactions of biological, cognitive, and
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!