Business, 07.12.2021 02:10 nuneybaby

During 2019 (its first year of operations) and 2020, Fieri Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2021, Fieri decided to change to the average method for both financial reporting and tax purposes. Income components before income tax for 2019, 2020, and 2021 were as follows:
($ in millions)201920202021
Revenues$430 $440 $470
Cost of goods sold (FIFO) (43) (45) (51)
Cost of goods sold (average) (62) (66) (72)
Operating expenses (262) (270) (274)
Dividends of $24 million were paid each year. Fieriâ€™s fiscal year ends December 31.
Required:
1. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle. (Ignore income taxes.)
2. Prepare the 2021â€“2020 comparative income statements.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 13:30

Employees who are paid to complete a task, such as build a house, are paid on a(n) basis

Answers: 1

Answer

Business, 21.06.2019 16:30

You are opening a new store and must project in your business plan the amount of inventory shrinkage. you have forecasted $1,200,000 in sales for the first year. assuming your shrinkage will be 5%, the high end of the national average, calculate the projected annual shrinkage for your business plan. you are opening a new store and must project in your business plan the amount of inventory shrinkage. you have forecasted $1,200,000 in sales for the first year. assuming your shrinkage will be 5%, the high end of the national average, calculate the projected annual shrinkage for your business plan.

Answers: 3

Answer

Business, 22.06.2019 11:50

Which of the following does not offer an opportunity for timely content? evergreen content news alerts content that suits seasonal consumption patterns content that matches a situational trigger content that addresses urgent pain points

Answers: 2

Answer

Business, 22.06.2019 17:30

Fabian got into an accident on his way to work. he had multiple fractures in his leg. his doctor advised strict bed rest for at least three months.fabian is a freelance wildlife photographer who usually works on a contract basis, and this is his primary source of income. before the accident, fabian was planning his finances. which goal of his financial plan would fabian in getting through without pay for the next three months? the goal that requires the creation of a/an would fabian get through the next three months without pay.

Answers: 1

Answer

You know the right answer?

During 2019 (its first year of operations) and 2020, Fieri Foods used the FIFO inventory costing met...

Questions

Business, 09.04.2021 22:50

Neela is making an Excel workbook, which will be on display at a school fair. She would like viewers to be able to use it interactively and easily ins...