there are on indirect effects of the change in inventory method. revenues for 2011 total 130,000 ,operating expenses for 2011 total 30,000. the company is subject to a 30% income tax rate in all year, it pays the income taxes payable of a current year in the first quarter of the next year . the company had 10,000 shares of common stock outstanding during all year in paid dividends of 1 per share in 2011 at the end of 2011 the company had cash of 10,000 inventory of 24,000, other assets of 70,800, and accounts payable of the company desires to show financial statements for the current year and previous year in its 2011 annual report.