Engle Enterprises reports net sales revenue for 2009 to be $595,000, January 1, 2009 inventory at $102,000, net purchases at $370,000, and operating expenses at $155,000. Engle Enterprises currently values inventory using LIFO. Using the LIFO method, December 31, 2009, inventory is valued at $89,000. Under FIFO, December 31, 2009, inventory would be valued at $96,700.
Compute net income for 2009 assuming Engel Enterprises uses:
a) LIFO to value its ending inventory
b) FIFO to value its ending inventory
