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ejfrankl
Mar 16, 2007, 08:36 AM
If a firm used lifo for several yerars during which the cost have trended higher if this firm achieves a substantial reduction in inventory quantities for 2007 by selling more merchandise that it purchases, the effect on 2007 net income of the inventory reduction compared to having no change in inventory quantity from the beginning to the end of 2007 is net income for 2007 greater if the inventory quantity declines;net income for 2007 will be less if the inventory quantity declines or net income for 2007 will not be affected because of the inventory quantity decline?