Dole Industries Had the Following Inventory Transactions Occur During 2017

question 6

Multiple Choice

Dole Industries had the following inventory transactions occur during 2017: $\begin{array}{lllll}&&\text { Units } & \text { Cost/unit } \\\text { Feb. 1.2017 } & \text { Purchase } & 90 & \$ 90 \\\text { Mar. 14.2017 } & \text { Purchase } & 155 & \$ 94 \\\text { Mav 1.2017 } & \text { Purchase } & 110 & \$ 98\end{array}$ The company sold 255 units at $126 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $2,500, what is the company's after-tax income using LIFO? (rounded to whole dollars)

• A)$5,220
• B)$5,404
• C)$4,186
• D)$3,654

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Definitions:

Mutual Funds

Mutual funds are investment vehicles comprised of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.

Abnormal Return

A term in finance that refers to the difference between an actual investment return and the expected return, based on the asset's risk and market movements.

Fourth Quarter Earnings

The financial performance of a company in the final quarter of its fiscal year, often used as an indicator of annual performance.

Beta

A financial metric that measures the volatility of a stock or portfolio in comparison to the market as a whole.