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questions 11, 10, & 8

Carter Company had the following account balances for the current year. Sales Sales Returns and Allowances Sales Discounts Purchases Purchases Returns and Allowances Purchase Discounts Freight-In Income from Operations: Required: Compute the income from operations, given that gross profit is $46,500. X $91,400 3,900 4,900 39,300 2,000 2,600 1,900 $ Beginning Inventory Ending Inventory Selling Expenses General and Administrative Expenses Interest Revenue Interest Expense $20,600 21,100 9,800 11,500 700 660 During the past year, prices have been steadily rising. Required: For each of the following three items, determine which inventory cost flow assumption, FIFO or LIFO, will result in the higher value. If neither applies, select "Value not affected." Accounts Payable Cost of Goods Sold Income Tax Expense FIFO LIFO X Value not affected ? Jenkins Company had the following account balances at the end of the year: Beginning Inventory O Ending Inventory Freight-In General and Administrative Expenses Interest Revenue Interest Expense Purchase Discounts Cost of Goods Purchased: Net Income: X $0 $0 $36,800 39,000 3,800 17,300 2,130 1,390 3,500 3 Purchases Returns and Allowances Purchases Required: Compute the following: 1. Cost of goods purchased 2. Net income, given that income from operations is $53,100. Sales Discounts Sales Returns and Allowances Sales Selling Expenses $ 5400 87000 5100 8300 181300 17800

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