medium · Investment Banking accounting

A company switching from LIFO to FIFO inventory accounting during a period of rising prices will report which of the following results?

  1. Lower Inventory on the balance sheet and higher COGS.
  2. Higher Inventory on the balance sheet and lower COGS.
  3. Lower Net Income due to higher tax payments.
  4. No change to EBITDA because inventory is a balance sheet item.

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