Which of the following is most likely considered a weakness of present value models?

R. J. Graziano Wholesale Corp. uses the LIFO method of inventory costing. In the current year, profit at R. J. Graziano is runni

Nata [24]

Answer:

a. What is the effect of this transaction on this year's and next year's income statement and income tax expense? Why?

The inventory account is a permanent asset account in the balance sheet, so it doesn't matter if the company purchases all that it can during the last days of December, it will not affect the income statement, nor their tax liability for the current year. A company only recognizes cost of goods sold when the goods are actually sold, not when they are purchased.

Since the company uses the LIFO (last in, first out) inventory method, all it will do is increase the value of ending inventory which changes into beginning inventory next year. You can reduce next year's income more by purchasing the goods next year.

b. If R. J. Graziano Wholesale had been using the FIFO method of inventory costing, would the president give the same directive?

If the company used the FIFO method, the result will be the same. Inventory is not COGS, whether you use FIFO, LIFO weighted average, specific identification, or any other acronym that you might come up with. At beginning of the year, inventory must be average to determine beginning inventory. it might help to increase COGS a little, therefore, decreasing net income, but the effects shouldn't be significant.

c. Should the plant accountant order the inventory purchase to lower income? What are the ethical implications of this order?

It is useless, and he should know it. The only implication is that this will help him realize his low IQ.

6 0

3 years ago

You want to see how raising your client's target cost-per-acquisition (cpa) might affect his ad performance. which tool could he

inna [77]

That would be a "target CPA simulator"

7 0

4 years ago

25 points and brianly

horsena [70]

Answer:

Sentence 3

Explanation:

5 0

3 years ago

Read 2 more answers

During global culture training for a group of employees who are being transferred to Egypt, Charmaine, the HR training manager,

joja [24]

Answer: Option E

Explanation: Cultural training refers to the training that is given to an individual for informing them about other cultures know-how.

In the Arab culture, the holding of hands is considered as an act of giving respect to others. It is considered as showing devotion and equality to the opposite party. Such acts comes from the well known hospitality culture of Arabic countries.

Thus, from the above we can conclude that the correct option is E.

7 0

3 years ago

a. The Gap purchased inventories totaling $10,438 million during fiscal 2015. Use the financial statement effects template to re

BartSMP [9]

Question Completion:

The GAP is a global clothing retailer for men, women, children, and babies. The following information is taken from The Gap's fiscal 2015 annual report.

Selected Balance Sheet Data ($ millions)

2015 2014

Inventories $1,901 $1,861

Accounts Payable 1,140 1,145

Answer:

The Gap

a) Cost of Goods Sold: $10,398

The cost of goods sold increases the Expenses and reduces the Net Income in the Income Statement.

b) The cash paid to suppliers is $10,443.

Explanation:

Data and Calculations:

Accounts Payable

Beginning balance $1,145

Purchases 10,438

Payment 10,443*

Ending balance 1,140

*Payment = Beginning balance Plus Purchases Minus Ending balance.

Cost of Goods Sold:

Beginning Inventories $1,861

Purchases 10,438

Ending Inventories (1,901)

Cost of goods sold $10,398

6 0

3 years ago