ABC Co. uses the FIFO inventory valuation method. What effect will an inflationary environment have on its income statement?

Lower profitably.

Lower cost of goods sold.

No effect.

Higher cost of goods sold.

Identify why a company would have fewer outstanding shares than issued shares.

		The company has redeemed some of its shares.
		Some shares are held to compensate employees.
		Some shares are restricted.
		Some shares are held by institutional investors.