The way you choose to calculate inventory costs can have a significant impact on your financial statements. For instance, using the FIFO method typically results in the highest value of ending inventory and the lowest cost of goods sold, whereas using the LIFO method generally results in the lowest value of ending inventory and the highest cost of goods sold. If you opt for the average method, the resulting figures are typically somewhere between those generated by the FIFO and LIFO methods. To make informed decisions about inventory management, it is critical to understand the various approaches and their potential effects on your financial statements. Based on the above-given statement, conduct a mini research to reflect on the above given information, make sure to cover all the following ares. 1. What are your thoughts on how inventory cost calculation methods can impact financial statements, particularly regarding the differences between FIFO, LIFO, and the average method? 2. Do you agree that FIFO yields the highest value of ending inventory and the lowest cost of goods sold, while LIFO results in the opposite? Why or why not-Think of inflation and deflation-? Furthermore, 3. What potential consequences could these discrepancies have on a company's financial performance and decision-making? When answering this question, students should focus on discussing the potential financial consequences of different inventory cost calculation methods, such as their impact on reported profits, tax liabilities, borrowing capacity, and inventory management decisions. They should also consider the context of the company and its specific needs and goals, as the optimal inventory cost calculation method may vary depending on factors such as industry, market conditions, and competitive landscape. Finally, students should support their arguments with relevant examples and data and demonstrate a thorough understanding of the advantages and drawbacks of each inventory cost calculation method