Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units Unit CostInventory, December 31, prior year 7,900 $ 11 For the current year: Purchase, March 5 19,900 9 Purchase, September 19 10,900 5 Sale ($27 each) 8,900 Sale ($29 each) 16,900 Operating expenses (excluding income tax expense) $409,000 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO.2. Compute the difference between the pretax income and the ending inventory amounts for the two cases. Comparison AmountsCase A Case BFIFO LIFO DifferencePretax IncomeEnding Inventory3. Which inventory costing method may be preferred for income tax purposes?

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine

As a general rule, when accountants calculate profit they account for explicit costs but usually ignorea. certain outlays of money by the firm. b. implicit costs. c. operating costs. d. fixed costs.

The sarbanes-oxley act was passed to question 6 options: prevent fraud at public companies. replace all of the old accounting procedures with new ones. improve the accuracy of the company's financial reporting. both a and c