LIFO & FIFO problems
Not what you're looking for?
Nu Company reported the following pre-tax data:
Net Sales 2800
Cost of Goods available for sale 2500
Operating Expenses 880
Effective tax rate 40%
Ending Inventories:
If LIFO is elected 820
If FIFO is elected 1060
1. What is Nu's gross profit percentage if it elects LIFO?
2. Wat is Nu's net income if it elects FIFO? LIFO?
I don't even know where to begin. I think the gross profit is $300 but I am not sure about figuring a gross profit %.
Purchase this Solution
Solution Summary
The solution explains the calculation of gross profit under LIFO and FIFO inventory methods.
Solution Preview
The gross profit is sales - cost of goods sold.
Cost of goods sold is opening inventory+purchases-closing inventory.
Opening inventory + purchases = goods available for ...
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.