Question - The Froto Company begin business on 1/1/2017 when they sold stock for $40,000 On March 1 Froto purchased 200 items of inventory at $20 each On July 1 Froto purchased 300 items of inventory at $30 each On October 1 Froto purchased 400 items of inventory at $40 each On December 15th Froto purchased 100 items of inventory at $100 each At count of inventory on December 31, there are 130 units in the warehouse On December 31, Froto had no payables or receivables Froto had sales of $43500 and is in the 30% tax bracket
a) Using FIFO determine 1) ending inventory 2) cost of goods sold 3) net income 4) ending cash
b) Using LIFO determine 1) ending inventory 2) cost of goods sold 3) net income 4) ending cash
c) How much money could Froto save by using LIFO versus FIFO?