The Following Information Is for Cho Company for 2013

question 109

Essay

The following information is for Cho Company for 2013:
Beginning inventory 120 units @$50
Units purchased 180 units @ $56
Cho sold 250 units for $95 each.
Required:
a) Calculate gross margin assuming Cho uses FIFO, LIFO, Weighted average.
b) Disregarding the effect of income taxes, what would be the dollar amount of difference in net income between FIFO and LIFO?
c) Calculate the 2013 cash flow from operating activities assuming that Cho uses LIFO, FIFO. Again, disregard the effect of income taxes.

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Definitions:

Organizational Financial Performance

The measure of a company's profitability, revenue growth, and financial health.

Conscientiousness

A personality trait marked by diligence, carefulness, and a desire to do a task well.

Adolescence

Describes the transitional stage of physical and psychological development that typically occurs between childhood and adulthood, characterized by significant changes in body, identity, and social relationships.

Unemployment

The condition of being jobless and actively seeking work, representing a measure of the health of an economy.