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1.

Financial information is presented below:

Operating expenses	$ 40000
Sales returns and allowances	2000
Sales discounts	6000
Sales revenue	166000
Cost of goods sold	86000

The amount of net sales on the income statement would be

$160000.

$166000.

$158000.

$164000.

2.

Financial information is presented below:

Operating expenses	$ 60000
Sales returns and allowances	2000
Sales discounts	6000
Sales revenue	140000
Cost of goods sold	106000

Gross Profit would be

$36000.

$32000.

$34000.

$26000.

3.

Novak has the following inventory data:

Nov. 1		Inventory		37 units @ $7.30 each
8		Purchase		146 units @ $7.85 each
17		Purchase		73 units @ $7.70 each
25		Purchase		110 units @ $8.10 each

A physical count of merchandise inventory on November 30 reveals that there are 122 units on hand. Ending inventory under FIFO is

$1932.

$937.

$1886.

$983.

4.

Pharoah Company had the following inventory transactions occur during 2022:

				Units		Cost/unit
Feb. 1, 2022		Purchase		134		$56
Mar. 14, 2022		Purchase		231		$58
May 1, 2022		Purchase		164		$61

The company sold 379 units at $78 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $2232, what is the companys after-tax income using LIFO?

$4856.00

$3901.80

$3399.20

$5574.00

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