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LIFO to FIFO Change At year-end, Union Co. announced it would change its inventory valuation method from LIFO to FIFO. Assume that the difference between

LIFO to FIFO Change

At year-end, Union Co. announced it would change its inventory valuation method from LIFO to FIFO. Assume that the difference between LIFO and FIFO is $10.4 million and purchase prices had historically been rising.

Required: Describe the financial effects of this policy change on the balance sheet, the income statement and the statement of cash flows. (Ignore any tax effects).

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