Business, 25.12.2019 19:31 madelyngv97

The following information pertains to anthara inc. which uses lifo to compute the value of inventories. [ei stands for ending inventory] inventory values computed under the two methods are given below. end of year ei - lifo ei - fifo income before taxes - lifo 2004 2,257.0 3,040.7 1,000.7 2005 2,202.9 3,166.6 1,174.0 2006 2,354.4 3,515.2 1,627.5 a. compute the income before taxes under fifo for 2005 and 2006. b. from 2005 to 2006, did input prices rise, fall or remain unchanged? explain. c. from inception till the end of 2006 (i. e., over the life of the company), how much has the company saved or lost in taxes by using lifo? assume a tax rate of 40%. d. assume that the company’s sales exceeds its purchases in 2007. what is the likely effect of this on the gross margin [(sales-cogs)/sales]ratio for 2007? state "increase, decrease or no change."

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The following information pertains to anthara inc. which uses lifo to compute the value of inventori...