Hogan Industries Had the Following Inventory Transactions Occur During 2022

question 115

Multiple Choice

Hogan Industries had the following inventory transactions occur during 2022: The company sold 306 units at $63 each and has a tax rate of 30%.Assuming that a periodic inventory system is used, and operating expenses of $1,800, what is the company's after-tax income using LIFO? (rounded to whole dollars)

• A)$2,832
• B)$3,288
• C)$2,302
• D)$1,982

Understand the relationship between profitability ratios and company financial decisions.

Understand the computation and interpretation of basic financial ratios, including net profit margin percentage, debt-to-equity ratio, and price-earnings ratio.

Comprehend how financial leverage impacts company's financial sustainability and shareholder's equity.

Determine the effects of transactions on liquidity ratios such as the current ratio and the acid-test (quick) ratio.

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