The following information is for Choi Company for Year 2:
Beginning inventory 120 units @ $100Units purchased 180 units @ $112Choi sold 250 units for $190 each
Required:a)Calculate gross margin assuming Choi uses:1)FIFO.2)LIFO.3)Weighted average.b)Disregarding the effect of income taxes, what would be the dollar amount of difference in net income between FIFO and LIFO?c)Again, disregard the effect of income taxes. Calculate the Year 2 cash flow from operating activities assuming that Choi uses:1)FIFO.2)LIFO.

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The Answer of The following information is for Choi Company for Year 2:
Beginning inventory 120 units @ $100Units purchased 180 units @ $112Choi sold 250 units for $190 each
Required:a)Calculate gross margin assuming Choi uses:1)FIFO.2)LIFO.3)Weighted average.b)Disregarding the effect of income taxes, what would be the dollar amount of difference in net income between FIFO and LIFO?c)Again, disregard the effect of income taxes. Calculate the Year 2 cash flow from operating activities assuming that Choi uses:1)FIFO.2)LIFO.

The Following Information Is for Choi Company for Year 2