A financial adviser with a client in the wholesale produce

Reference no: EM13569245

A financial adviser with a client in the wholesale produce business that just completed its first year of operations. Due to weather conditions, the cost of acquiring produce to resell has escalated during the later part of this period. Your client, Raphaela Gonzalez, mention that because her business sells perishable goods, she has striven to maintain a FIFO flow of goods. Although sales are good, the increasing cost of inventory has put the business in a tight cash position. Raphaela has expressed concern regarding the ability of the business to meet income tax obligations? Question: What method of inventory you would advise Raphaela to use? Explain how your recommendation would help with reducing her income taxes.

Reference no: EM13569245

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