FINANCE –EXAM 31. The Hasting Company began operations on J
FINANCE –EXAM 3 1. The Hasting Company began operations on January 1, 2003 and uses the FIFO method in costing its raw material inventory. An analyst is wondering what net income would have been if the company had consistently followed LIFO (instead of FIFO) from the beginning, 1/1/2003. He has the following information available to him: What would net income have been in 2004 if Hastings had used LIFO since 1/1/2003? [removed]$ 110,000 [removed]$ 150,000 [removed]$ 170,000 [removed]$ 230,000 2. A customer is currently suing a company. A reasonable estimate can be made of the costs that would result from a ruling unfavorable to the company, and the amount involved is material. The company's managers, lawyers, and auditors agree that there is only a remote likelihood of an unfavorable ruling. This contingency: [removed]Should be disclosed in a footnote. [removed]Should be disclosed as a parenthetical comment in the balance sheet. [removed]Need not to be disclosed. [removed]Should be disclosed by an appropriation of retained earnings. ...
![FINANCE –EXAM 3
1. The Hasting Company began operations on January 1, 2003
and uses the FIFO method in costing its raw material inventory.
An analyst is wondering what net income would have been if
the company had consistently followed LIFO (instead of FIFO)
from the beginning, 1/1/2003. He has the following information
available to him:
What would net income have been in 2004 if Hastings had used
LIFO since 1/1/2003?
[removed]$ 110,000
[removed]$ 150,000
[removed]$ 170,000
[removed]$ 230,000
2. A customer is currently suing a company. A reasonable
estimate can be made of the costs that would result from a
ruling unfavorable to the company, and the amount involved is
material. The company's managers, lawyers, and auditors agree
that there is only a remote likelihood of an unfavorable ruling.
This contingency:
[removed]Should be disclosed in a footnote.
[removed]Should be disclosed as a parenthetical comment in the
balance sheet.](https://image.slidesharecdn.com/financeexam31-220925072356-7cd331ce/85/FINANCE-EXAM-31-The-Hasting-Company-began-operations-on-J-1-320.jpg)
![[removed]Need not to be disclosed.
[removed]Should be disclosed by an appropriation of retained
earnings.](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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FINANCE –EXAM 31. The Hasting Company began operations on J
- 1. FINANCE –EXAM 3 1. The Hasting Company began operations on January 1, 2003 and uses the FIFO method in costing its raw material inventory. An analyst is wondering what net income would have been if the company had consistently followed LIFO (instead of FIFO) from the beginning, 1/1/2003. He has the following information available to him: What would net income have been in 2004 if Hastings had used LIFO since 1/1/2003? [removed]$ 110,000 [removed]$ 150,000 [removed]$ 170,000 [removed]$ 230,000 2. A customer is currently suing a company. A reasonable estimate can be made of the costs that would result from a ruling unfavorable to the company, and the amount involved is material. The company's managers, lawyers, and auditors agree that there is only a remote likelihood of an unfavorable ruling. This contingency: [removed]Should be disclosed in a footnote. [removed]Should be disclosed as a parenthetical comment in the balance sheet.
- 2. [removed]Need not to be disclosed. [removed]Should be disclosed by an appropriation of retained earnings.