Tim Mattke Company began operations in 2018 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2020, in accordance with other companies in its industry, Mattke changed its inventory pricing to FIFO. The pretax income data is reported below. Year Weighted-Average FIFO 2018 $370,000 $395,000 2019 390,000 430,000 2020 410,000 450,000 Instructions a. What is Mattke’s net income in 2020? Assume a 20% tax rate in all years. b. Compute the cumulative effect of the change in accounting principle from weighted-average to FIFO inventory ­pricing. c. Show comparative income statements for Tim Mattke Company, beginning with income before income tax, as presented on the 2020 income statement.

a)     $360,000

b)     $52,000

c) Net Income                             360,000            344,000        316,000

Explanation:

Part 1) Determine the net income for 2020 as follows using the First In First Out (FIFO)

= FIFO 2020 = $450,000 - The Income Tax

= $450,000 - ($450,000 x 0.35)

= $450,000- $90,000

= $360,000

Part 2) Compute the cumulative effect in change of the weighted average to FIFO

 Weighted average  FIFO    Difference    [email protected]%(difference)  net effect

2018  370,000               395,000    25,000                     5,000           20,000

2019   390,000              430,000     40,000                    8,000           32,000

Total in Net effect                                                                               $52,000

Part 3) Show comparative income statement as follows

                                                         2020                     2019                2018

Income before tax                          450,000              430,000         395,000

Remove the tax (@20)                      90,000                86,000          79,000

Net Income                                       360,000            344,000        316,000

d) social security number

let me know if i am correct or not, so i can edit the answer.

according to the song of roland, the characteristics of an ideal knight are: loyalty to the king, skilled warriors and horseman, valiant, bold, courageous, strong and proud in battle. they should be determined to fulfil their duties and willing to die to make their people safe.