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# HI, I need help filling this out for class. It's not homework but want to be prepared.... />After filling this out, I need to answer the following:a). Which method would result in the higher pretax income? EPS? b). Which method would result in the lower income tax expense?     Explain, assuming a 30 percent average tax rate. c). Which method would produce the more favorable cash flow? Explain.  Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment Screen Shot 2020-02-11 at 9.07.48 AM.png DONNER COMPANY Partial Income Statement For the Month Ended January 31, 2014 Units Total cost Unit cost ‘ Inventory, Jan. 1 500 2,365 4.73 Purchases 600 3,600 6 Purchases 160 1.280 8 Goods available for sale 1,260 7,245 Ending inventory 640 Cost of goods sold 620 Sales (given) 620 I Selling price per unit \$16 1. Prepare a summarized income statement through gross proﬁt for the month of January under each method of inventory. (a) (b) (d (d) ‘l ‘ ‘ s edﬁc Average Cost FIFO UFO p. . Identiﬁcation Sales revenue 1 Cost of goods sold - - - - Gross profit ATTACHMENT PREVIEW Download attachment Screen Shot 2020-02-11 at 9.08.05 AM.png Cost of goods sold calculations: (d) Specific identification: 370 units @ \$. 250 units @ \$_ 620 0 (a) Average cost: Check: Cost of Goods Available for Sale 7,245 Average cost = Cost of Goods Avail. for Sale Less: Cost of Goods Sold # of units available for Sale Ending Inventory 7,245 Average cost = # of units in ending inventory 640 Units sold = average cost 0 Cost of Goods Sold = err (b) FIFO: units @ \$ units @ \$_ Must equal 620 units =&gt; (c) LIFO: units @ \$_ _= units @ \$_ Must equal 620 units =&gt;

1. FIFO method will result in greater higher pretax... View the full answer

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Cost of goods sold calculation
Specific identification
Mose specific information requ
ofar inventory
Average cent = \$7245
1260
Auresage west = \$5.75
Unit sold. 2 620
cogs
=...

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