Chapter 6 Mini Case When math is required, to receive full credit - SHOW YOUR MATH, otherwise you will not receive credit (even if the answer is correct). You must submit your answer on a word document or spreadsheet. Hand written responses are not acceptable and will not receive credit. Submit on Blackboard, if submitted via email or another source you will not receive credit. If submitted late (after the due date and time) you will not receive credit. The inventory costing method a company chooses can affect its financial statements and the decisions of the people who use those statements. 1. Company A uses the LIFO inventory method and discloses its use in the notes to the financial statements. Company B uses FIFO method to account for its inventory. Company B does not disclose which method it uses in the notes. Company B reports a higher net income than Company A. In which company would you prefer to invest? Give your reasons. 2. Representational faithfulness is an accepted accounting concept. If you were a shareholder or a creditor of a company, would you want it to faithfully represent its accounting for inventory? Give your reasons