Question: Consider the department store example provided in the chapter regarding gross margin percentages under different inventory methods: How might an auditor approach developing a pro

Consider the department store example provided in the chapter regarding gross margin percentages under different inventory methods:

2004 2003 2002 Nordstrom 36.1% 34.6% 33.2% (FIFO) Federated (Macy's) 40.5% 40.4%

How might an auditor approach developing a pro forma version of this data to enable a comparison between both retailers?

2004 2003 2002 Nordstrom 36.1% 34.6% 33.2% (FIFO) Federated (Macy's) 40.5% 40.4% 40.0% (retail LIFO)

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