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D&K Healthcare Resources, Inc.
8000 Maryland Avenue, Suite 920
St. Louis, Missouri 63105
August 9, 2000
RE: Form 10-K Report for the year ended June 30, 2000
Dear Gentlemen:
This letter is written to meet the requirements of Regulation S-K calling for
a letter from the registrant's independent accountants whenever there has
been a change in accounting principle or practice.
During fiscal 2000, the Company changed from the last-in, first-out (LIFO)
method of accounting for inventories to the first-in, first-out (FIFO)
method. According to the management of the Company, the FIFO method is more
reflective of certain changes to how its business is currently managed and
operated, and therefore, more fairly reflects the Company's results of
operations and financial position.
A complete coordinated set of financial and reporting standards for
determining the preferability of accounting principles among acceptable
alternative principles has not been established by the accounting profession.
Thus, we cannot make an objective determination of whether the change in
accounting described in the preceding paragraph is to a preferable method.
However, we have reviewed the pertinent factors, including those related to
financial reporting, in this particular case on a subjective basis, and our
opinion stated below is based on our determination made in this manner.
We are of the opinion that the Company's change in method of accounting is to
an acceptable alternative method of accounting, which, based upon the reasons
stated for the change and our discussions with you, is also preferable under
the circumstances in this particular case. In arriving at this opinion, we
have relied on the business judgment and business planning of your
management.
Very truly yours,
/s/ Arthur Andersen LLP
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