This question is from CFA book. 'Financial Statement Analysis" Reading 35, Question 4) In part C(i) of the question, the solution calulates Zenab Distributor’s COGS $59,800. I don’t understand how this is calculated. I beleive Zenab income statement was adjusted (where COGS was 61300)to reach this FIFO COGS, but how? Also in part C(ii) Faybech income statement was adjusted (where COGS 52000) to reach a LIFO COGS $53675,but how. Also how was the ratios in Part C(ii) were calculated for Zenab after converting its income statement to 100% LIFO. Help is greatly appreciated. Thanks

everybody seems to be asking about this same question. Search for Zenab / Faybech on posts in the last 6 months or so, or better still search for posts by gdiddy. This problem was asked first by him, and someone solved it in entirety, esp this part about inflation rates etc. CP