Nan Chen, CFA, is comparing a firm with two of its industry competitors. She obtains the
21. Nan Chen, CFA, is comparing a firm with two of its industry competitors. She obtains the following financial excerpts from the firm’s financial statements, as well as the inventory turnover ratio on two of its competitors.
The firm uses the LIFO inventory costing method under U.S.GAAP, which is consistent with its industry competitors. What conclusions should the analyst reach when comparing the firm’s inventory turnover ratio to those of ties competitors? A. Outperformed both competitors. B. Outperformed Company 1 only. C. Outperformed Company 2 only.