BTN 6-3 Golf Challenge Corp. is a retail sports store carrying golf apparel and equipment. The store
is at the end of its second year of operation and is struggling. A major problem is that its cost of inventory
has continually increased in the past two years. In the first year of operations, the store assigned inventory
costs using LIFO. A loan agreement the store has with its bank, its prime source of financing,
requires the store to maintain a certain profit margin and current ratio. The store’s owner is currently
looking over Golf Challenge’s preliminary financial statements for its second year. The numbers are not
favorable. The only way the store can meet the required financial ratios agreed on with the bank is to
change from LIFO to FIFO. The store originally decided on LIFO because of its tax advantages. The
owner recalculates ending inventory using FIFO and submits those numbers and statements to the loan
officer at the bank for the required bank review. The owner thankfully reflects on the available latitude
in choosing the inventory costing method.
这个企业违不违反一致性原则