Essay
The following information is for Cho Company for 2013:
Beginning inventory 120 units @$50
Units purchased 180 units @ $56
Cho sold 250 units for $95 each.
Required:
a) Calculate gross margin assuming Cho uses FIFO, LIFO, Weighted average.
b) Disregarding the effect of income taxes, what would be the dollar amount of difference in net income between FIFO and LIFO?
c) Calculate the 2013 cash flow from operating activities assuming that Cho uses LIFO, FIFO. Again, disregard the effect of income taxes.
Correct Answer:
Verified
a) FIFO
Cost of goods sold = (120 × $50)...View Answer
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Correct Answer:
Verified
Cost of goods sold = (120 × $50)...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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