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Describe the key aspects of Farmer Brothers business. What are the major risk factors the company faced? What is your assessment of Farmer Brothers financial
Describe the key aspects of Farmer Brothers business. What are the major risk factors the company faced? What is your assessment of Farmer Brothers financial ratios and cash flow performance? How does it compare to Green Mountain Coffee? Consider the information about Farmer Brothers LIFO reserve in the footnotes. What would the companys income before taxes be in 2011, 2010, and 2009 if they used FIFO instead of LIFO? How much inventory (in pounds of coffee) did the company have at 6/30/2011 and 6/30/2010? What is the approximate average cost of LIFO inventory at 6/30/11 and 6/30/10? Explain the companys year-end purchase decision in 2011. Without switching from LIFO, how much could the company have increased income before
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