During November 2013, Cortez Company sold 125 units @ $450 each. Cash selling and administrative expenses for the year were $22,000. 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 Cortez Company for 2013 assuming:
1) FIFO inventory cost flow
2) LIFO inventory cost flow
b) Prepare the operating activities section of the statement of cash flows for 2013 assuming:
1) FIFO inventory cost flow
2) LIFO inventory cost flow

Question

During November 2013, Cortez Company sold 125 units @ $450 each. Cash selling and administrative expenses for the year were $22,000. 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 Cortez Company for 2013 assuming:
1) FIFO inventory cost flow
2) LIFO inventory cost flow
b) Prepare the operating activities section of the statement of cash flows for 2013 assuming:
1) FIFO inventory cost flow
2) LIFO inventory cost flow

Quizplus · Accepted Answer

The Answer of During November 2013, Cortez Company sold 125 units @ $450 each. Cash selling and administrative expenses for the year were $22,000. 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 Cortez Company for 2013 assuming:
1) FIFO inventory cost flow
2) LIFO inventory cost flow
b) Prepare the operating activities section of the statement of cash flows for 2013 assuming:
1) FIFO inventory cost flow
2) LIFO inventory cost flow

During November 2013, Cortez Company Sold 125 Units @ $450