Page 47 - CFA Lecture Day 10 Slides
P. 47
LOS 33.e: Explain appropriate analyst Session Unit 9:
adjustments to a company’s financial 33. Financial Statement Analysis: Applications
statements to facilitate comparison with
another company., p.325
A. What is the current ratio at the end of 20X2 before and after the
appropriate adjustment for comparability to a similar firm that reports using
the FIFO inventory valuation method?
B. What is the appropriate adjustment to the firm’s 20X2 COGS to make the
firm’s income statement comparable to that of a firm that reports under the
FIFO method?
tanties
