When student have the English-language PDF of this concise Case in a coursepack, they will moreover have the choice to buy an audio edition. At Merrimack Tractors and Mowers in 2008, merchandise production prices are growing faster than rivals' prices, and as a consequence earnings are probable to fall underneath those.
The company controller and the business president have discussed this dilemma, and the controller has mentioned that if the company shifted from LIFO to FIFO it might not be impossible to keep earnings increase in year 2008. He displays a memo to the president elucidating how stock stream assumptions operate and supplies pro forma income statements that show that, for one product (reel mower units), adopting FIFO would enable Merrimack to report higher income in the year 2008 than it did in the year 2007, however higher income taxes would have to be rewarded.
PUBLICATION DATE: December 09, 2008 PRODUCT #: 311S10-HCB-SPA
This is just an excerpt. This case is about FINANCE & ACCOUNTING
