Q. a. Jaclyn is going to the company's primary bank to negotiate a line of credit also wants to show the maximum amount of income throughout actually changing last year's results. Illustrate what costing method of inventory (variable or absorption) should she choose? Explain why?

b. If the bank requires GAAP financial statements, illustrate what method would Jaclyn choose?

c. The bank sends her off through the comment. We need more net income for a couple of months before we can grant you the line of credit. Because Jaclyn projects no increase in demand for the company's watches in the next few months, illustrate what options are available to her?

d. Which option should she choose also explain why? Do you think the options are legal? Are they ethical?