Pierce Ice Cream Company Operates Several Ice Cream Shops Across

Pierce Ice Cream Company operates several ice cream shops across the United States.The company has plans to expand the number of shops during the coming year.This planned expansion will require a large bank loan.During the past 5 years,some periods were more profitable than others,and the President of Pierce has suggested to the company accountant that the depreciation and inventory valuation methods should be changed frequently.This change would allow the company to create the appearance that earnings were very consistent over the years.Discuss the merits of the President's suggestion regarding the financial statements.