Business, 13.04.2021 01:00 hannnahbeela
Mannisto Inc. uses the FIFO inventory cost flow assumption. In a year of rising costs and prices, the firm reported net income o $212.357 and average assets of $1,554,120. If Mannisto had used the LIFO cost flow assumption in the same year, its cost of goods sold would have been $47,840 more than under FIFO, and its average assets would have been $41,360 less than under FIFO. Required:
a. Calculate the firm's ROI under each cost flow assumption (FIFO and LIFO). (Enter your answers as percentages rounded to 1 decimal place (i. e., 12.2 % ).) FIFO LIFO 13.7 % 17.2 % ROI
b. Suppose that two years later costs and prices were falling. Under FIFO, net income and average assets were $254,017 and $1,832,530, respectively. If LIFO had been used through the years, inventory values would have been $43 440 less than under FIFO and current year cost of goods sold would have been $20.095 less than under FIFO.
Calculate the firm's ROI under each cost flow assumption (FIFO and LIFO). (Enter your answers as percentages rounded to 1 decimal place (i. e., 12.2 %)) LIFO FIFO % 13.9 ROI
Answers: 2
Business, 22.06.2019 02:30, teresaduggan1433
On january 1, 2018, jay company acquired all the outstanding ownership shares of zee company. in assessing zee's acquisition-date fair values, jay concluded that the carrying value of zee's long-term debt (8-year remaining life) was less than its fair value by $21,600. at december 31, 2018, zee company's accounts show interest expense of $14,440 and long-term debt of $380,000. what amounts of interest expense and long-term debt should appear on the december 31, 2018, consolidated financial statements of jay and its subsidiary zee? long-term debt $401,600 $398,900 $401,600 $398,900 interest expense $17,140 $17,140 $11,740 $11,740 a. b. c. d.
Answers: 3
Mannisto Inc. uses the FIFO inventory cost flow assumption. In a year of rising costs and prices, th...
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