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The following information pertains to Anthara Inc. which uses LIFO to compute the value of inventories. Note: El stands for ending inventory. Inventory values computed
The following information pertains to Anthara Inc. which uses LIFO to compute the value of inventories. Note: El stands for "ending inventory." Inventory values computed under the two methods are given below. End of year 2004 2005 2006 El - LIFO 2,257.0 2,202.9 2,354.4 El - FIFO 3,040.7 3,166.6 3,515.2 Income before taxes - LIFO 1,000.7 1,174.0 1,627.5 D. Assume that the company's sales exceeds its purchases in 2007. What is the likely effect of this on the gross margin [(Sales-COGS)/Sales]ratio for 2007? (Note: please submit your answer by typing in either increase, decrease or no change.") The following information pertains to Anthara Inc. which uses LIFO to compute the value of inventories. Note: El stands for "ending inventory." Inventory values computed under the two methods are given below. End of year 2004 2005 2006 El - LIFO 2,257.0 2,202.9 2,354.4 El - FIFO 3,040.7 3,166.6 3,515.2 Income before taxes - LIFO 1,000.7 1,174.0 1,627.5 D. Assume that the company's sales exceeds its purchases in 2007. What is the likely effect of this on the gross margin [(Sales-COGS)/Sales]ratio for 2007? (Note: please submit your answer by typing in either increase, decrease or no change.")
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