Question
Company A disclosed a substantial LIFO liquidation in 2019, but you do not expect substantial liquidations in 2020. You are now trying to forecast MB2's
Company A disclosed a substantial LIFO liquidation in 2019, but you do not expect substantial liquidations in 2020. You are now trying to forecast MB2's 2020 performance. All else equal (i.e., prices & demand are held constant), how should this disclosure affect your expectation of COGS in 2020? Would you expect COGS to INCREASE, DECREASE or NOT CHANGE relative to 2019?
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
