Accounting Question One (Steve Jobs)

International Financial Reporting Standards do not permit the use of LIFO in valuing inventories. There has been much debate regarding the disqualification of LIFO as an acceptable U.S. method of inventory valuation. This topic has even been the discussion of Presidential debate.

Select a company that currently values inventory using LIFO. Calculate a restatement of its inventory using FIFO (noting to adjust COGS, taxes, and equity, as well as the inventory value). Calculate the following ratios before and after adjustment.