The following information was taken directly from the annual report of a firm that wishes to remain anonymous (The dates have been changed ) Required a The corporation indicates that earnings can be affected unrealistically by rapid increases and fluctuations in prices when using LIFO Comment b How...

a Matching current costs against current revenue is usually considered to result in more realistic e ...

The following information was taken directly from the annual report of a firm that wishes to remain

Question:

The following information was taken directly from the annual report of a firm that wishes to remain anonymous. (The dates have been changed.)

Required
a. The indicates that earnings can be affected unrealistically by rapid increases and fluctuations in prices when using LIFO. Comment.
b. How much taxes will need to be paid on past earnings from the switch from LIFO? How will the switch from LIFO influence taxes in the future?
c. How will a switch from LIFO affect 2009 profits?
d. How will a switch from LIFO affect future profits?
e. How will a switch from LIFO affect 2009 cash flow?
f. How will a switch from LIFO affect future cash flow?
g. Speculate on the real reason that the wishes to switch from LIFO.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...