"Flay Foods has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2021, Flay decided to change to the LIFO method. As a result of the change, net income in 2021 was $80 million. If the company had used LIFO in 2020, its cost of goods sold would have been higher by $6 million that year. Flay’s records of inventory purchases and sales are not available for 2019 and several previous years. Last year, Flay reported the following net income amounts in its comparative income statements: ($ in millions) 2018 2019 2020 Net income $ 80 $ 82 $ 84 Required: 1. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle. (Ignore income taxes.) 3. What amounts will Flay report for net income in its 2019–2021 comparative income statements?"
Answers: 1
Business, 22.06.2019 14:30, ayoismeisjjjjuan
Amethod of allocating merchandise cost that assumes the first merchandise bought was the first merchandise sold is called the a. last-in, first-out method. b. first-in, first-out method. c. specific identification method. d. average cost method.
Answers: 3
Business, 22.06.2019 19:00, karmaxnagisa20
By 2020, automobile market analysts expect that the demand for electric autos will increase as buyers become more familiar with the technology. however, the costs of producing electric autos may increase because of higher costs for inputs (e. g., rare earth elements), or they may decrease as the manufacturers learn better assembly methods (i. e., learning by doing). what is the expected impact of these changes on the equilibrium price and quantity for electric autos?
Answers: 1
"Flay Foods has always used the FIFO inventory costing method for both financial reporting and tax p...
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