3 2. The Company uses FIFO or average cost methods to account for its inventory. Management considers a switch to LIFO. It estimates that if the Company had used LIFO for all its inventories in the past, the inventory balances at the end of 2017 and 2018 would have been lower by $420 and $475, respectively. "It is obvious that we could have saved taxes in past years as well as in 2018, if we used LIFO," suggests the CFO's assistant. Do you agree with the CFO assistant? Would you recommend to the Company switching to LIFO for tax purposes? Discuss the pros and cons of such a switch. 20 Y AXAS HS OV0Lke en's Shondls