asked you for advice, since she knows you are taking an accounting class.

Why does this year$-$end inventory purchase of wood boards lower net income?

Select one:

a$.$ Because the company is spending cash to purchase more inventory.

b$.$ The ending inventory will be stated at a higher amount than if FIFO was used.

c$.$ A lower cost of goods sold reduces net income.

d$.$ Since the company is using LIFO, the last items purchased will be included in the cost of good sold.

e$.$ The controller made a mistake; the purchase of inventory has no bearing on the amount of net income.