Millington Materials is a leading supplier of building equipment, building products, materials, and timber for sale, with over 200 branches across the Mid-South. On January 1, 2024, management decided to change from the average inventory costing method to the FIFO inventory costing method at each of its outlets. The following table presents information concerning the change. The income tax rate for all years is 25%.   Income before Income Tax FIFO Average Cost Difference Before 2023 $ 34 million $ 27 million $ 7 million 2023 46 million 24 million 22 million 2024 29 million 28 million 1 million Required: 1. Prepare the journal entry to record the change in accounting principle. 2. Determine the net income to be reported in the 2024–2023 comparative income statements. 4. Indicate the affect of the change in the 2024–2023 comparative statements of shareholders’ equity assuming cash dividends were $11.50 million each year and that no dividends were paid prior to 2023.

The following data was obtained from the records of ABC Inc., for the current year. Sales during the year were 210 units.  Jan 1, 2021 Beginning Inventory 80 units at  $8 Jan 11, 2021 Purchases 65 units at $10 Jan 23, 2021 Purchases 55 units at $ 12 January 31 Purchases 53 units at $14 IF THE TAX RATE IS 30%, HOW MUCH IN TAXES WILL ABC SAVE IN THE CURRENT YEAR IF THEY CHOOSE TO USE LIFO INSTEAD OF FIFO?

Tulip Company decided to change from LIFO to FIFO inventory costing, effective January 1, 2020. The following data were available: Year Pretax Operating Excess of FIFO Ending Inventory Income using LIFO over LIFO Ending Inventory 2020 $40,000 $8,000 2019 20,000 7,000 2018 30,000 4,000 The income tax rate is 35%. The company began operations on January 1, 2018, and has paid no dividends since inception. Required: Answer the following questions relating to the 2019-2020 comparative financial statements. a. What is net income for 2020? b. What is restated net income for 2019? c. Prepare the 2019 statement of retained earnings as it would appear in the comparative 2019-2020 financial statements.

Nu Company reported the following pretax data for its first year of operations. Net sales 2,960 Cost of goods available for sale 2, 480 Operating expenses 830 Effective tax rate 20% Ending inventories: If LIFO is elected 940 If FIFO is elected 1, 150 What is Nu's net income if it elects LIFO? Multiple Choice $800 $ 640 $472 $590

Tulip Company decided to change from LIFO to FIFO inventory costing, effective January 1, 2020. The following data were available: Year Pretax Operating Excess of FIFO Ending Inventory Income using LIFO over LIFO Ending Inventory 2020 $40,000 $8,000 2019 20,000 7,000 2018 30,000 4,000         The income tax rate is 35%. The company began operations on January 1, 2018, and has paid no dividends since inception. Required:   Answer the following questions relating to the 2019-2020 comparative financial statements. a. What is net income for 2020? b. What is restated net income for 2019? c. Prepare the 2019 statement of retained earnings as it would appear in the comparative 2019-2020 financial statements.

SLR Corporation has 1,200 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows:    Product 1 Product 2 Cost   $ 54     $ 36   Selling price     80       38   Costs to sell     4       5     Determine the carrying value of SLR’s inventory assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products. What is the before-tax income effect of the LCNRV adjustment?   What is the before-tax income effect of the LCNRV adjustment?

The Quartz Company has been taking a physical inventory every quarter in order to prepare its quarterly financial statement. The management is interested to know if they have some alternative to find an efficient way of determining the cost of ending inventory for its quarterly reports. You have been given the following information abased on which you are supposed to suggest the management something that will fulfil the requirements.                                           The Quartz Company                                       Partial Income Statement                                      For the year ended Dec 31, 2020   Net Sales                                                                                                          $655,000 CGS: Beginning Inventory                                                                  80000 Purchases, Net                                                         575000 COGAS…

Sagar

In 2021, the BowWow Company purchased 19,910 units from its supplier at a cost of $13.00 per unit. BowWow sold 10,060 units of its product in 2021 at a price of $21.00 per unit. BowWow began 2021 with $999,430 in inventory (inventory is carried at a cost of $13.00 per unit). Using this information, compute BowWow's gross profit for 2021. Record your answer rounded to the nearest dollar. Do not include a dollar sign or commas in your answer. For example, record $1,234,567.89 as 1234568.

Millington Materials is a leading supplier of building equipment, building products, materials, and timber for sale, with over 200 branches across the Mid-South. On January 1, 2021, management decided to change from the average inventory costing method to the FIFO inventory costing method at each of its outlets. The following table presents information concerning the change. The income tax rate for all years is 25%.     Income before Income Tax       FIFO Average Cost Difference Before 2020 $30 million $16 million $14 million 2020 16 10 6 2021 20 18 2            Required:1. Prepare the journal entry to record the change in accounting principle.2. Determine the net income to be reported in the 2021–2020 comparative income statements.4. Indicate the affect of the change in the 2021–2020 comparative statements of shareholders’ equity assuming cash dividends were $2 million each year and that no dividends were paid prior to 2020.