6. How would switching from FIFO to LIFO affect a company's financial statements in a period of rising prices (i.e., an inflationary economy)? Remember to give consideration to tax implications. 7. After a physical count of its inventory, Whetzel Co. discovered that $400 of inventory is missing. Show how the required write-down of inventory would affect Whetzel Co.'s statements. 8. Banks Comnany recognized $3,000 of depreciation expense on a delivery van. 9. Chavez Company replenished its petty casm postage, office supplies and other miscellaneous items. Indicate the effects of recognizing the expenditu Stan's Surf Shack purchased 5 surfboards for $200 each. Later it purchased more s.... bards for $250 each. Stan's uses the perpetual inventory system. Assume that 6 surfboards were sold during the period for $350 cash each. 10. How would the sale affect the financial statements if Stan's Surf Shack uses the LIFO in