After reviewing the financial statements of Perez Company, Lou Brewer concluded that the company was a service

Question:

After reviewing the of Perez Company, Lou Brewer concluded that the company was a service company. Mr. Brewer based his conclusion on the fact that Perez's displayed no inventory accounts.
Required
Explain how Perez's implementation of a 100 percent effective just-in-time inventory system could have led Mr. Brewer to a false conclusion regarding the nature of Perez's business.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...