Question

a) My company uses LIFO to account for its inventory cost flow. At the end of the year, my inventory is valued on the balance sheet at $1,200,000 and my company's LIFO Reserve is $200,000. If my company used FIFO instead of LIFO, the value of its inventory at the end of the year would have been approximately $1,000,000. Select one: True False

b) If I know my company's Net Profit Margin and Total Asset Turnover, I can come up with at least an approximation of my company's Return on Total Assets. Select one: True False