total cashflow anybody, exactly, higher, total, could

cyber21

Hey everybody

total CF is higher under LIFO and lower under FIFO

What do they exactly mean with CF?

Total CF = Cash inflow - Cash outflow?

Would be grateful, if anybody could explain this to me.

thanks

amqata

when prices are increasing, LIFO inventory cost of goods sold > FIFO

higher LIFO cogs results in lower taxable income and lower cash outflow to taxes. hence CFO is higher under LIFO.