Business Case Studies & Business Publications

Henry Spots a Problem at Sunshine O.J. (...

Fairchild, Gregory...

Case

Henry Spots a Problem at Sunshine O.J. (A)

Fairchild, Gregory B.; Maiden, Stephen E.

OM-1614 | Published May 16, 2019 | 7 pages Case

Collection: Darden School of Business

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Henry Franklin works at Sunshine O.J. (Sunshine), a three-year-old, fast-growing organic orange juice manufacturer near Charleston, South Carolina. Before his employment at Sunshine, Franklin worked for about two decades in his family’s business, Franklin’s Hardware. Franklin learned a great deal during his time in the hardware business and hopes to use some of his insights to help Sunshine, which has been struggling to become profitable. This A case introduces inventory generally and highlights differences between “last in, first out” (LIFO) and “first in, first out” (FIFO) accounting. Franklin's manager asks him to prepare a LIFO/FIFO analysis for Sunshine based on real data so that he can present it in a management meeting.