Question: Use the following information to answer the following. Income Tax rate is 34% Given the financial information presented above what would be the effect on

Use the following information to answer the following.

Control Furniture Company Annual Report Excerpts (Figures in thousands of dollars) December 31 2015 2016 Inventories at

Income Tax rate is 34%

Given the financial information presented above what would be the effect on cash in 2015 of converting the company from LIFO to FIFO:

A) Increase of 78.7

B) Decrease of 78.7

C) Decrease of 152.7

D) Increase of 152.7

Control Furniture Company Annual Report Excerpts (Figures in thousands of dollars) December 31 2015 2016 Inventories at FIFO Cost 846.3 852.6 (257.2) Excess of FIFO Cost over LIFO Cost (231.4) 595.4 Inventories at LIFO Cost 614.9

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