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In the pro-forma income statements that James Colburn prepared for Rick Martino, the costs of reel mower units and transportation were rising for 2007 and

In the pro-forma income statements that James Colburn prepared for Rick Martino, the

costs of reel mower units and transportation were rising for 2007 and 2008. How would

Merrimack Mowers and its accounting choices have differed if inventory purchase prices

and transportation costs had been stable or falling over the two-year period?

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