Retailing 8th Edition by Patrick Dunne,Robert Lusch, James Carver

Exercise 8

What are the differences among and the uses of these three accounting statements-income statement, balance sheet, and statement of cash flow
How would the following activities affect a retailer's balance sheet and income statement for the current year
a. The retailer overestimates the amount of year-ending inventory that is obsolete, thus reducing inventory.
b. The retailer overestimates the breakage on a current rebate program.
c. The value of your inventory shrinks by a higher than expected amount. You had planned for $46,500 shrinkage, but your July count was $68,200 lower.
d. The retailer switches from LIFO to FIFO.