Unformatted text preview: I/S is period of time Should not be surprising if gap is getting larger b/c of inflation o Formula: Take CGS under LIFO and convert to FIFO Excess FIFO inventory: • Beginning of year inv. + End of year inv. = CGS (FIFO) Impact on NI: • CGS (LIFO) – CGS (FIFO) = change in NI • A checklist for earnings quality on I/S: o There are some adjustments we can make to earnings...
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- Spring '11
- Income Statement, FIFO and LIFO accounting, Excess FIFO inventory