You have just been hired as a consultant to tangier

Assignment Help Accounting Basics

Reference no: EM13598191

You have just been hired as a consultant to Tangier Industries, a newly formed company. The company president, John Meeks, is seeking your advice as to the appropriate inventory method Tangier should use to value it's inventory and cost of goods sold. Mr. Meeks has narrowed the choice to LIFO and FIFO. He has heard that LIFO might be better for tax purposes, but FIFO has certain advantages for reporting to investors and creditors. You have been told that the company will be profitable in its first year and for the foreseeable future.

REQUIRED:

Prepare a report for the president describing the factors that should be considered by Tangier in choosing between LIFO and FIFO.

Reference no: EM13598191

Questions Cloud

Minor inc had revenue of 572000 and expenses other than : minor inc. had revenue of 572000 and expenses other than income taxes of 282000 for the current year. the company is

Prepare a stockholders equity section at december 31 2010 : the following stockholders equity accounts arranged alphabetically are in the ledger of tyner corporation at december

Assume the partnership income-sharing agreement calls for : o. guillen beginning capital 60000 and k. williams beginning capital 90000 are partners. during 2010 the partnership

A small business owner has decided to invest 50000 per year : a small business owner has decided to invest 50000 per year in the stock market for her retirement. she is consider the

You have just been hired as a consultant to tangier : you have just been hired as a consultant to tangier industries a newly formed company. the company president john meeks

The 2010 annual report of software city inc included the : the 2010 annual report of software city inc. included the following comparative summary of earnings per share over the

Abc co and xyz co are identical firms in all respects : abc co. and xyz co. are identical firms in all respects except for their capital structure. abc is all-equity financed

Assume if you were a stockholder who held 100 shares of : kosmier company has outstanding 500000 shares of 50 par value common stock that originally sold for 60 per share.

Sands company had accounts receivable 55600 and allowance : on january 1 2010 sands company had accounts receivable 55600 and allowance for doubtful accounts 5390. sands company

User Account

All Pages