The following information pertains to anthara inc. which uses lifo to compute the value of inventories. [ei stands for ending inventory] inventory values computed under the two methods are given below. end of year ei - lifo ei - fifo income before taxes - lifo 2004 2,257.0 3,040.7 1,000.7 2005 2,202.9 3,166.6 1,174.0 2006 2,354.4 3,515.2 1,627.5 a. compute the income before taxes under fifo for 2005 and 2006. b. from 2005 to 2006, did input prices rise, fall or remain unchanged? explain. c. from inception till the end of 2006 (i. e., over the life of the company), how much has the company saved or lost in taxes by using lifo? assume a tax rate of 40%. d. assume that the company’s sales exceeds its purchases in 2007. what is the likely effect of this on the gross margin [(sales-cogs)/sales]ratio for 2007? state "increase, decrease or no change."

Which of the following statements is true? a job costing system will have a separate work in process account for each of the major processes. a process costing system will have a single work in process account. a process costing system will have a separate raw materials account for each of the major processes. a process costing system will have a separate work in process account for each of the major processes.

When color is used on a topographical drawing, black is used to represent what?

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu