Inventories are stated at lower of cost or market

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Reference no: EM13929720

You notice in the notes to the financial statements that “Inventories are stated at lower of cost or market. Cost is determined on the first-in, first-out basis.” How would the financial statements differ if the company used LIFO instead of FIFO? How, if at all, would the use of a different inventory valuation method change your analysis of the firm’s liquidity?

Reference no: EM13929720

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