contestada

During 2017, Windsor Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2016 and 2015 (Windsor’s first year of operations) under FIFO was $174,610 and $191,390, respectively. Pretax income using weighted-average pricing in the prior years would have been $151,100 in 2016 and $173,400 in 2015. In 2017, Windsor reported pretax income (using weighted-average pricing) of $206,200. Show comparative income statements for Windsor, beginning with "Income before income tax," as presented on the 2017 income statement. (The tax rate in all years is 29%.)

Respuesta :

Answer:

Description                              2017              2016            2015

Net Income                             $146,402‬    $107,281‬       $123,114‬

Explanation:

The question is to compute a statement of income comparative figures. The step is therefore to use the weighted average pricing method to replace the historical income before taxes for both years 2016 and 2015. After this is done, we then re-calculate the appropriate taxes and arrive at the net income.

Description                              2017              2016            2015

Income before taxes             206,200         151,100        173,400

Subtract: Income tax @29%   59,798‬           43,819‬           50,286‬

Net Income                             146,402‬         107,281‬         123,114‬

Otras preguntas