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Under U.S. GAAP, application of the LIFO and FIFO inventory methods result in differences in...

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Accounting

Under U.S. GAAP, application of the LIFO and FIFO inventory methods result in differences in the balance sheet, income statement and cash flow statement. Compare and contrast the effect of the two methods on each financial statement and determine the advantages and disadvantages of each method. Answer the question following the numbering in the table.

Financial Statement

LIFO

FIFO

Balance Sheet

1

2

Income Statement

3

4

Cash Flow Statement

5

6

Other Considerations

7

8

For example, you fill the blank number 1 by providing answer: "Disadvantage-Balance sheet inventory amount not reflective of current replacement cost.".

Please list and provide your answer regarding the advantages and disadvantages to each financial statement from number 2 to number 8.

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