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."

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 17:10, alexwlodko

Storico co. just paid a dividend of $3.15 per share. the company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. if the required return on the company’s stock is 12 percent, what will a share of stock sell for today?

Answers: 1

continue

Business, 22.06.2019 18:00, 20jhuffman

Bond j has a coupon rate of 6 percent and bond k has a coupon rate of 12 percent. both bonds have 14 years to maturity, make semiannual payments, and have a ytm of 9 percent. a. if interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?

Answers: 2

continue

Business, 22.06.2019 23:00, aprilleigh102

Ernesto baca is employed by bigg company. he has a family membership in his company's health insurance program. the annual premium is $5,432. ernesto's employer pays 80% of the total cost. ernesto's contribution is deducted from his paycheck. what is his annual contribution? $1,086.40 $1,125.65 $1,527.98 $1,567.20 save and exit

Answers: 3

continue

Business, 22.06.2019 23:10, nataliemakin7123

R& m chatelaine is one of the largest tax-preparation firms in the united states. it wants to acquire the tax experts, a smaller rival. after the merger, chatelaine will be one of the two largest income-tax preparers in the u. s. market. what should chatelaine include in its acquisition plans? it should refocus its attention from the national to the international market. in addition to acquiring the tax experts, it should also determine the best way to drive independent "mom and pop" tax preparers out of business. chatelaine will need to explain to the federal trade commission how the acquisition will not result in an increase in prices for consumers. chatelaine should enter a price-based competition with its other major competitor to force it out of business and become a monopoly.

Answers: 3

continue

You know the right answer?

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