In a period of rising prices, how would the following ratios be affected by the accounting decision

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In a period of rising prices, how would the following ratios be affected by the accounting decision to select LIFO, rather than FIFO, for inventory valuation?
* Gross Margin
* Current Ratio
* Asset Turnover
* Debt-to-equity ratio
* Average tax rate

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Business Analysis Valuation Using Financial Statements

ISBN: 978-1111972301

5th edition

Authors: Paul M. Healy

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Question Posted: Sep 19, 2013 04:48 AM

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In a period of rising prices, how would the following ratios be affected by the accounting decision

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Gross margin LIFO has higher cost of goods sold which makes it lower than FIFO metho...View the full answer

Business Analysis Valuation Using Financial Statements

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