National Furniture has used the following assumptions in the preparation of it’s financial statements.  All calculation methods adhere to Generally Accepted Accounting Principles.

>  The cost method of inventory valuation is used on a last-in, first-out basis. The company turns over it’s inventory on a monthly basis and projects that this method of inventory management is the most efficient means of operation and is consistent with the business’ logistics system.	

>  The cash method of accounting is used.

>  A straight-line depreciation formula is used.

>  A 12% annualized rate of interest is assumed for accounts payable and receivable unless otherwise noted.