Monday, June 24, 2019

Institution Affiliation Speech or Presentation Example | Topics and Well Written Essays - 500 words

Institution Affiliation - Speech or Presentation ExampleOf FIFO and LIFO, which system would pass in the higher pretax income? Which would result in the higher EPS? FIFO would result in higher pre-tax income because it has higher gross profit. EPS is net income divided by average outstanding shares of common subscriber line and hence higher pre-tax income results in higher net income given taxes is fixed percentage of income. This implies that FIFO would also result in higher EPS. 3.Of FIFO and LIFO, which method would result in the lower income tax expense? Explain, assuming a 35 percent average tax rate. LIFO method would result in lower income tax expense because it has lower pretax income. Comparison Assuming that other expenses are $2000 FIFO $9600 - $2000 = $7600 35% of $7600 = $2660 LIFO $9080 - $2000 = $7080 35% of $7080 = $2478 4.Of FIFO and LIFO, which method would catch the more favorable cash flow? Explain. FIFO method would produce the more favourable cash flow bec ause it has higher total ending balance. problem 2 Reading Publically Available Financial Statements

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