Page 24 - FINAL CFA I SLIDES JUNE 2019 DAY 8
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Session Unit 8:
28. Inventories
LOS 28.k: Calculate and compare ratios of companies, including companies that use different inventory methods.
LOS 28.l: Analyze and compare the financial statements of companies, including companies that use different
inventory methods. p.195
Comparing financial ratios under LIFO and FIFO. Viper Corp. is a high-performance bicycle manufacturer. Viper’s
balance sheets for 20X5 and 20X6 and an income statement for 20X6 are as shown. The balance sheets and income
statement were prepared using LIFO. Calculate the CR, inventory turnover, long-term debt-to-equity ratio, gross profit
margin, net profit margin, and return on assets ratio for 20X6 for both LIFO and FIFO inventory cost flow methods.
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tanties
