pp 320-321 means pages 320-321. It's a reference to that page in the accounting textbook. Image of page attached below.

ecision Case Suppose you are considering investing in two businesses, Tiger and Phil Mickelson Systems. The two companies are virtually identical, and began operations at the beginning of the current year. During the year, each pany purchased inventory as follows Woods leasuring profitability ased on different inventory nd depreciation methods 3 Jan. 4 10,000 units at $4 40,000 Apr. 6 Aug. 9 Nov. 2710,00 units at 7-70,000 Totals 5,000 units at S = 25,000 7,000 units at 642,000 32,000 $177,000 During the first year, both companies sold 25,000 unsof nventory. In early January, both companies purchased equipment costing $143,000 (10- estimated useful life and a $20,000 residual value). Woods uses the inventory depreciation methods that maximize reported income (FIFO and straight-line). contrast, Mickelson uses the inventory and depreciation methods that mini income taxes (LIFO and double-declining-balance). Both companies' trial bala at December 31 included the following: Sales revenue Operating $270,000 80,700 Requirements 1. Prepare both companies' income statements. (p. 346) 2. Write an investment letter to address the folowing questions for your clienc pears to be more profitabie? Which company has m Which company ap cash to invest in new projects? Which company would you prefer to invest in Why? (pp. 320-321) Format your investment letter as follows: INVESTMENT LETTER To: Our clients From: Student Name or Phil Mickelson Systems Subject for a long-term investment