My company uses lifo to account for its inventory cost flow


a) My company uses LIFO to account for its inventory cost flow. At the end of the year, my inventory is valued on the balance sheet at $1,200,000 and my company's LIFO Reserve is $200,000. If my company used FIFO instead of LIFO, the value of its inventory at the end of the year would have been approximately $1,000,000. Select one: True False

b) If I know my company's Net Profit Margin and Total Asset Turnover, I can come up with at least an approximation of my company's Return on Total Assets. Select one: True False

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Financial Accounting: My company uses lifo to account for its inventory cost flow
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