During November 2012,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 2012 assuming:
1)FIFO inventory cost flow
2)LIFO inventory cost flow
b)Prepare the operating activities section of the Statement of Cash Flows for 2012 assuming:
1)FIFO inventory cost flow
2)LIFO inventory cost flow

Question

During November 2012,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 2012 assuming:
1)FIFO inventory cost flow
2)LIFO inventory cost flow
b)Prepare the operating activities section of the Statement of Cash Flows for 2012 assuming:
1)FIFO inventory cost flow
2)LIFO inventory cost flow

Quizplus · Accepted Answer

The Answer of During November 2012,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 2012 assuming:
1)FIFO inventory cost flow
2)LIFO inventory cost flow
b)Prepare the operating activities section of the Statement of Cash Flows for 2012 assuming:
1)FIFO inventory cost flow
2)LIFO inventory cost flow

During November 2012,Cooper Company Sold 120 Units of a Product