Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the following information can be found in abc co.'

The following information can be found in ABC Co.'s financial statements: ...

60.1K

Verified Solution

Question

Finance

The following information can be found in ABC Co.'s financial statements:

2006 2005

Finished Goods $503,380 $390,720

Work -in-Process 490,246 372,864

Raw Materials 273,136 213,578

Total FIFO Value 1,266,762 977,162

Less LIFO reserve 125,902 142,372

Inventories 1,140,860 834,790

Retained earnings 7,052,000 6,318,000

Assume a tax rate of 35%.

Inventories valued using the LIFO method represented approximately 80% of consolidated inventories.

What will be the retained earnings for 2006 if ABC used FIFO valuation?

$6,410,542

$7,786,000

$7,133,836

$8,192,860

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Purple Company has $200,000 in net income for2018 before deducting any compensation or otherpayment...Purple...

Chemistry
1.2K views

Select the processes that are expected to be exothermic: a. Li+(g) + F-(g) --> LiF (s) b. Ca2+(g) + 2e-...

Psychology
1.2K views

Analyze a current television or magazine advertisement and answer these questions: Whose behavior is the ad attempting...

Biology
1.2K views

25 Motorcycle operators do Are easy to see and determine what they will Must share...

Physics
1.2K views

If a particular resistor is using 336W because 5 9A is flowing through it then...

Physics
1.2K views

25 According to C E van der Waal the interatomic potential varies with the average...

Physics
1.2K views

t A thin ring of radius R metre has charge q coulomb uniformly spread on...

Basic Math
1.2K views

A pendulum is a weight suspended from a fixed point that swings back and forth...

Algebra
1.2K views

1 Which of the following represents the solutions to x 1 x 4 7 3...

Accounting
1.2K views

Mr. Andre James is in business trading as James CC. He received a Statement from...

Accounting
1.2K views

Sunnyvale Motorcycles budgets to sell 440 units in March and 570 units in April. The...

Accounting
1.2K views

Joey parked his car on the top of a hill when he went to watch...