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1) Explain to a friend who is taking a first-semester accounting course the differences between FIFO and LIFO inventory cost-flow assumptions. Discuss how the choice

1) Explain to a friend who is taking a first-semester accounting course the differences between FIFO and LIFO inventory cost-flow assumptions. Discuss how the choice of each assumption impacts a company under conditions of rising and falling inventory costs. Make sure to include specific discussion of ending inventory, cost of goods sold, gross profit, net income, taxes, and cash flow.

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