Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 36

Gable, Inc., is a provider of home furnishings.he company uses the FIFO inventory method.he following information was taken from the company's recent financial statements (dollar amounts are in thousands):

The financial statements also revealed that had Gable been using LIFO, its cost of goods sold would have been $1,865,000.he company's income taxes and payments amount to approximately 40 percent of income before taxes.
a.xplain how LIFO can result in a higher cost of goods sold.ould you expect LIFO to result in a greater or lesser valuation of the company's ending inventories Defend your answer.
b.ssuming that Lollar had been using LIFO, compute the following amounts for the current year.how your supporting computations, with dollar amounts in thousands.
1.ncome before taxes
2.ncome taxes expense (which are assumed equal to income taxes actually paid)
3.et income
4.et cash provided by operating activities