Use the Following Information for

question 6

Multiple Choice

Use the following information for
RF Company had January 1 inventory of $100,000 when it adopted dollar-value LIFO.During the year, purchases were $600,000 and sales were $1,000,000.December 31 inventory at year-end prices was $143,360, and the price index was 112.
-What is RF Company's gross profit?

• A)$428,000.
• B)$431,360.
• C)$443,460.
• D)$868,640.

Recognize the similarities and differences between amortization and depreciation across asset types.

Identify the nature of retained earnings and their representation on financial statements.

Analyze the relationship between reported profits and actual cash flow.

Determine actions that impact a company's cash balance.

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