Financial Reporting Analysis ( The statement of income for the year ending December 31, 2021 for Water Works Limited was as follows: $ Revenue 3,450,000 Cost of Sales 1,795,000 Gross Profit 1,655,000 Other operating expenses 500,000 PBIT 1,155,000 The company uses the LIFO method of stock

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Financial Reporting Analysis (

The statement of income for the year ending December 31, 2021 for Water Works Limited was as follows:

$
Revenue	3,450,000
Cost of Sales	1,795,000
Gross Profit	1,655,000
Other operating expenses	500,000
PBIT	1,155,000

The company uses the LIFO method of stock valuation, but the company is assessing a change to the weighted average method. Details of inventory for December 2021 is as follows:

Inventory valuation under:

LIFO Weighted Average

$000 $000

January 1, 2021 180,000 175,200

December 31, 2021 294,000 264,500

Calculate the PBIT if the weighted average method of stock valuation is used.

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