Question: Mamosa Corporation has been using the FIFO cost flow method during a prolonged period of inflation. During the same time period, Mamosa has been paying

Mamosa Corporation has been using the FIFO cost flow method during a prolonged period of inflation. During the same
time period, Mamosa has been paying out all of its net income as dividends. What adverse effects may result from this policy?
Oscar Geer, a mid-level product manager for Theresa's Shoes, thinks his company should switch from LIFO to FIFO. He
says, "My bonus is based on net income. If we switch it will increase net income and increase my bonus. The company would
Mamosa Corporation has been using the FIFO cost flow method during

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