QUESTIONS 45 THROUGH 68 RELATE TO FINANCIAL STATEMENT ANALYSIS

51. Assume U.S. GAAP (generally accepted accounting principles) applies unless

otherwise noted.

The year-end balances in a company’s LIFO reserve are $56.8 million in the

company’s financial statements for both 2007 and 2008. For 2008, the measure

that will most likely be the same regardless of whether the company uses the LIFO

or FIFO inventory method is the:

A. inventory turnover.

B. gross profit margin.

C. amount of working capital.