Business, 25.11.2021 06:10 celinarubio77

Vance Company reported the following summarized annual data at the end of 2020: Sales revenue $1,000,000
Cost of goods sold 600,000
Gross margin 400,000
Operating expenses 250,000
Income before income taxes $150,000
Based on an ending FIFO inventory of $250,000. The income tax rate is 40%. The controller of the company is considering a switch from FIFO to LIFO. He has determined that on a LIFO basis, the ending inventory would have been $180,000.
a. Re-state the summary information on a lifo basis.
b. What effect, if any, would the proposed change have on Vanceâ€™s income tax expense, net income, and cash flows?
c. If you were the owner of business, what would you be to this proposed change?

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Vance Company reported the following summarized annual data at the end of 2020: Sales revenue $1,0...

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