Excrcise 22-5 (Part Level Submission) https:\'edugen.wileyplus.com edugen/shared
ID: 2552121 • Letter: E
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Excrcise 22-5 (Part Level Submission) https:'edugen.wileyplus.com edugen/shared'assignmenttest qprint.uni *Exercise 22-5 (Part Level Submission) Presented below are income statements prepared on a LIFO and FIFO basis for Windsor Company which started operations on January 1, 2016. The company presently uses the LIFO method of pricing its inventory and has decided to switch to the FIFO method in 2017. The FIFO income statement is computed in accordance with the requirements of GAAP. Windsor's profit-sharing agreement with its employees indicates that the company will pay employees 10% of income before profit-sharing Income taxes are ignored LIFO Basis FIFO Basis 2017 2016 2017 300 2016 Sales Cost of goods sold Operating expenses Income before profit-sharing Profit-sharing expense Net income $2,910 $2,910 $2,910 $2,910 900 1,040 1,040 1,040 1,040 970 91 $879 1,180 960 1,070 690 69 $621 910 91 $819 800 86 $714 Answer the following questions If comparative income statements are prepared, what net income should Windsor report in 2016 and 2017? (Round answers to 0 decimal places, e.g. 125.) 2017 2016 Net income s Attempts: 0 of 3 used The parts of this question must be completed in order. This part will be available when you complete the part above. Copyright 2000-2018 by Jhn Wiley& Sans, Inc ar related companies. Nl rights reserved. 1 of 1 3/25/2018, 11:53 AMExplanation / Answer
Answer:-
Income Statement for the year ended
Particular 2017 2016
Sales $2,910 $2,910
Cost of goods Sold $1,070 $900
Operating Expenses $1040 $1040
Income before profit sharing $800 $970
Profit Sharing Expenses $86 $91
Net Income $714 $879
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