During November 2014, Cooper Company sold 120 units of a product for $375 each. Selling and administrative expenses for the year were $14,000. All transactions were cash transactions. The following information is also available about Cooper's inventory and purchases:
The company's income tax rate is 30%.
Required:
a) Prepare an income statement for Cooper Company for 2014 assuming:
1) FIFO inventory cost flow
2) LIFO inventory cost flow
b) Prepare the operating activities section of the Statement of Cash Flows for 2014 assuming:
1) FIFO inventory cost flow
2) LIFO inventory cost flow

Question

During November 2014, Cooper Company sold 120 units of a product for $375 each. Selling and administrative expenses for the year were $14,000. All transactions were cash transactions. The following information is also available about Cooper's inventory and purchases:  
The company's income tax rate is 30%.
Required:
a) Prepare an income statement for Cooper Company for 2014 assuming:
1) FIFO inventory cost flow
2) LIFO inventory cost flow
b) Prepare the operating activities section of the Statement of Cash Flows for 2014 assuming:
1) FIFO inventory cost flow
2) LIFO inventory cost flow

Quizplus · Accepted Answer

The Answer of During November 2014, Cooper Company sold 120 units of a product for $375 each. Selling and administrative expenses for the year were $14,000. All transactions were cash transactions. The following information is also available about Cooper's inventory and purchases:  
The company's income tax rate is 30%.
Required:
a) Prepare an income statement for Cooper Company for 2014 assuming:
1) FIFO inventory cost flow
2) LIFO inventory cost flow
b) Prepare the operating activities section of the Statement of Cash Flows for 2014 assuming:
1) FIFO inventory cost flow
2) LIFO inventory cost flow

During November 2014, Cooper Company Sold 120 Units of a Product