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Anni [7]
3 years ago
7

Tamarisk, Inc. had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1, 2017 Purchase 94 $94 Mar. 14,

2017 Purchase 161 $98 May 1, 2017 Purchase 114 $102 The company sold 265 units at $131 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $2600, what is the company’s after-tax income using LIFO?
a. $4012
b. $3982
c. $5689
d. $5732
Business
1 answer:
Vedmedyk [2.9K]3 years ago
5 0

Answer:

Company’s after-tax income using LIFO would be $3,982

Explanation:

Revenues: 265 * $131 = $34,715

To calculate the cost of the units sold using LIFO you have to use the cost of the last purchases.

For this case it would be:

114 units * $102 + 151 units * $ 98 = $26,426

Once we have the gross profit (deducting the cost from the net sales), we have to deduct the expenses to obtain the net profit before taxes.

$34,715 net sales

-

$26,426 LIFO cost of goods

-----------

$8,289 gross profit

-

$2,600 expenses

----------

$5,689 net profit before taxes

$1,707 (30% TAX)

----------

$3,982 net income

To have the total income we have to deduct the tax that is calculated mutiplying the net income before tax by the taxe rate.

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Answer and Explanation:

The categorization is as follows:

For Poor Mission Statements:

1. Lists all or all kinds of  the products the organization sells

2. is product-oriented

3. is very broad  or wide

4. is less or lower than seven words

For Good Mission Statements:

1.  Addresses customers the organization serves

2. Is meaningful  and relevant

3. Is specific  and determined

4. Describes the business the organization is in

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2 years ago
The manager of the manufacturing unit of a company is responsible for the costs of the manufacturing unit. The president is in t
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Answer:

AC Problems : Incurred even at 0 output level, much varying & deviant from cash flows

VC Problems : Doesn't include fixed cost, incomplete expenditure, incomplete financial (accounting) statements.

Explanation:

Average Cost is the cost per unit off output.

Problems with AC as a performance measure :

  • It includes all (fixed & variable cost) average. So, including fixed cost, it is not zero even at zero output level.
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  • It's result are deviant as evident from cash flows.

Variable Cost is the cost incurred on variable factors of production.

Problems with VC as a performance measure :

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Street & Smith publishes the same baseball magazine with exactly the same stories but with 16 different covers to appeal to
Lorico [155]

Answer:

The answer is 'One product and multiple market segments'

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The advantage of this strategy is that it helps to avoid the additional costs of developing and producing additional versions of the product.

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3 years ago
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Year 1 Year 2 Amounts billed to clients for services rendered $ 182,000 $ 232,000 Cash collected from clients 154,000 184,000 Ca
Advocard [28]

Answer:

Explanation:

Year 1:

Cash collected from clients $154,000

Salaries paid to employees for services rendered during the year $27,000

Utilities $84,000

Purchase of insurance policy $58,200

So, in order to find net cash flow, $(154000-27000-84000-58200)=-15200

Year 2:

Cash collected from clients $184,000

Salaries paid 34000

Utilities paid 94000

Insurance paid is 0

So, net cash flow $184000-$(34000+94000)=$56000

Year1 paid 27000 in salaries, accrued =32000

So still 5000 has to be paid in year 2

Year 2 paid 34000 ⇒ so accrued is 29000

Insurance accrued for each year is 58200/3=19400

Income statement for year 1 and 2

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Revenue:  

Income from services 182000 232000

Expense

Salary 84000 94000

Utilities 32000 29000

Insurance 19400 19400

Net income 46600 89600

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3 years ago
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