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Unformatted text preview: of goods sold. Below is a description of Frank's inventory, purchases and sales for 1994. Units Cost per unit Total Beginning inventory-LIFO (Jan. 1, 1994) Total 2 2 1 5 $150 160 170 $300 320 170 $790 Purchases during 1994 10 $200 $2,000 Available for sale 15 $2,790 Goods sold during 1994 14 Ending inventory- LIFO (December 31,1994) ? On December 30, 1994, Frank was trying to decide whether or not to purchase four additional TV sets from the local wholesale warehouse before the end of the fiscal year. If purchased, the units would cost $220 each. He won't be able to sell them until around the middle of next year (1995). Frank can borrow money at 10% and his marginal tax rate is 20%. Required: Should Frank purchase the four TV's before the end of the year? Should he purchase more?...
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- Spring '11
- frank, Total purchases, sale Goods, nationally known TV