answers to the 7 parts/aspects.

Required: You are requested to prepare a report analyzing ABC's Inventory management efficiency. Precisely, you are required to compute inventory turnover for 2018 based on LIFO and FIFO and to contrast the two ratios with two standards: (8@5 marks each) 1. ABC Inc for the prior year 2017 and 2. Its main competitor, XYZ Inc. XYZ Inc's inventory turnover stood at 4.9 based on FIFO and 7.3 using the LIFO approach for 2018. Your report must include: 3. The appropriate ratios computed based on FIFO and LIFO approaches. 4. Interpretation of the differences in the ratios across the FIFO and LIFO approaches. 5. An Analysis of whether the FIFO or LIFO ratios provide a more accurate illustration of the companies' efficiency in use of inventory. In addition, include the following sections in you report 6. Commentary on the legitimacy of LIFO and FIFO under IFRS and US GAAP 7. A discussion regarding the most recommended approach (LIFO or FIFO) depending on the nature (Perishable / Non-Perishable) of a company's inventory. 8. In an Inflation environment characterized by increasing costs, which approach (LIFO/FIFO) would be beneficial to a company for Income Tax purposes?Financial Reports: Interpreting Effects of the LIFO/FIFO Choice on Inventory Turnover (40 marks) ABC, Inc is a major player amongst companies that manufacture farm and construction equipment The following details were disclosed in their annual report regarding inventories. "Inventories are reported at the lower of: a) cost or b) market. Cost is calculated chiefly using the last- in, first-out (LIFO) method. Suppose that the FIFO (first-in, first-out) approach had been in used, inventories would have been $3,183 million, $2,617 million, and $2,403 million in excess of the figures reported at December 31, 2018, 2017, and 2016, respectively. ABC Inc reported disclosed the following details on the balance sheet: 2018 2017 2016 Inventories $8.781 $7,204 $6.351 2018 2017 2016 Cost of Goods Sold $38.415 $32.626 $29,549