Adjust the financial statements of companies using different inventory accounting methods to compare…

Adjust the financial statements of companies using different inventory accounting methods to compare and describe the effect of the different methods on cost of goods sold and inventory balances. Discuss how a company"s choice of inventory accounting method affects other financial items such as income, cash flow, and working capital, and compute and describe the effects of the choice of inventory method on profitability, liquidity, activity, and solvency ratios.

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