LIFO FIFO 转换

NO.PZ202308140300007606 问题如下 Robert Groff, equity analyst, is preparing a report on Crux Corp. part of his report, Groff makes a comparative financianalysis between Crux anits two main competitors, RolCorp. anMikko InCrux anMikko report unr US GAanRolreports unr IFRS.Groff gathers information on Crux, Rolby, anMikko. The relevant financiinformation on the three companies, anon the instry, is proviin Exhibit 1.Exhibit 1: SelecteFinanciInformation (millions of US llars)* This es not matthe change in the inventory valuation allowanbecause the valuation allowanis receto reflethe valuation allowanattacheto items solanincreasefor aitionnecessary write-wns.To compare the financiperformanof the three companies, Groff cis to convert LIFO figures into FIFO figures, anaust figures to assume no valuation allowanis recognizeany company.Q. Whigroup of ratios usually appears more favorable with inventory write-wn? A.Activity ratios B.Solvenratios C.Profitability ratios A is correct. inventory write-wn increases the cost of sales anreces profit anreces the carrying value of inventory anassets. This ha negative effeon profitability ansolvenratios. However, activity ratios appepositively affectea write-wn because the asset base, whether totassets or inventory (nominator), is rece The numerator, sales, in totasset turnover is unchange anthe numerator, cost of sales, in inventory turnover is increase Thus, turnover ratios are higher anappemore favorable the result of the write-wn. 如题