Use the Information That Follows Concerning Edward Company to Answer

question 89

Essay

Use the information that follows concerning Edward Company to answer problems
Edward Company began business on January 1 and uses the periodic system. During January, Edward made the following purchases:
$\begin{array}{llr}\text { January 3: } & 100 \text { units } @ \$ 30 & \$ 3,000 \\\text { January 21: } & 400 \text { units } @ \$ 20 & \$ 8,000 \\\text { January sales: } & 320 \text { units } \$ 40 & \$ 12,800\end{array}$
Other information:
$\begin{array}{lrr} \text { January expenses excluding cost of goods sold } &\$800\\ \text { January 31 current assets excluding inventory } &11,000\\ \text {January 31 current liabilities } &6,000\\ \text { Number of shares of common stock } &300\\\end{array}$

-Calculate Edward's January earnings per share under the FIFO and LIFO cost flow assumptions.

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Definitions:

Modest Growth

A rate of growth that is steady but not rapid, often seen as sustainable and manageable over time.

Market Economy

An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses.

Supply and Demand

The economic model that determines the price of an item in a market, based on the quantity of the good that producers wish to sell at various prices and the quantity that consumers wish to buy.

Perfectly Competitive Market

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information where no single buyer or seller can influence the market price.