During December 2016,Crowe Company sold 125 units @ $225 each.Cash selling and administrative expenses for the year were $11,000.All transactions were cash transactions.The following information is also available:
The company's income tax rate is 30%.
Required:

a)Prepare an income statement for Crowe Company for 2016 assuming:
1)FIFO inventory cost flow
2)LIFO inventory cost flow
b)Prepare the operating activities section of the statement of cash flows for 2016 assuming:
1)FIFO inventory cost flow
2)LIFO inventory cost flow

Question

During December 2016,Crowe Company sold 125 units @ $225 each.Cash selling and administrative expenses for the year were $11,000.All transactions were cash transactions.The following information is also available:
The company's income tax rate is 30%.
Required:
  
a)Prepare an income statement for Crowe Company for 2016 assuming:
1)FIFO inventory cost flow
2)LIFO inventory cost flow
b)Prepare the operating activities section of the statement of cash flows for 2016 assuming:
1)FIFO inventory cost flow
2)LIFO inventory cost flow

Quizplus · Accepted Answer

The Answer of During December 2016,Crowe Company sold 125 units @ $225 each.Cash selling and administrative expenses for the year were $11,000.All transactions were cash transactions.The following information is also available:
The company's income tax rate is 30%.
Required:
  
a)Prepare an income statement for Crowe Company for 2016 assuming:
1)FIFO inventory cost flow
2)LIFO inventory cost flow
b)Prepare the operating activities section of the statement of cash flows for 2016 assuming:
1)FIFO inventory cost flow
2)LIFO inventory cost flow

During December 2016,Crowe Company Sold 125 Units @ $225 Each