The following comparative information is available for Keysor Company for 2014.
LIFO
FIFO
Sales revenue $88,900 $88,900
Cost of goods sold 38,400 19,100
Operating expenses (including depreciation) 27,800 27,800
Depreciation 14,400 14,400
Cash paid for inventory purchases 37,100 37,100
Determine net income under each approach. Assume a 33% tax rate.
LIFO
FIFO
Net income $ $
Determine net cash provided by operating activities under each approach. Assume that all sales were on a cash basis and that income taxes and operating expenses, other than depreciation, were on a cash basis.
LIFO
FIFO
Net cash provided by operating activities $ $
Calculate the quality of earnings ratio under each approach. (Round answers to 2 decimal places, e.g. 5.15.)
LIFO
FIFO
Quality of earnings ratio
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