question 3/4

QUESTION 3 XYZ Company purchased inventory and later wrote it down. However, the inventory's current net realizable value is higher than the value when written down. XYZ Company's inventory balance will most likely be: O a higher if it complies with IFRS. Ob higher if it complies with U.S. GAAP. oc the same under U.S. GAAP and IFRS O d. cannot be determined from the information given. QUESTION 4 Using the data below, what is the manager most likely to conclude about the change in the company's performance from 2018 to 20197 2019 2018 ROE 7.2% 9.7 EBIT margin 2.1% 2.9% Interest burden 117.5% 111.4% Tax burden 86.8% 88.1% Total asset turnover 1.52 1.59 Financial leverage 2.21 2.16 a. The firm's profitability, tax expense, and asset utilization decreased, and its interest expense and leverage increased. b. The firm's profitability and asset utilization decreased, and its interest expense tax expense, and financial leverage increased. OC. The firm's profitability, tax expense, and asset utilization increased, and its interest expense and leverage decreased. od. The firm's profitability, interest expense, and asset utilization decreased, and its tax expense and leverage increased