Company A uses the first-in, first-out (FIFO) method to account for its inventory, and Company B uses weighted-average cost. Analyze the effect of this difference in accounting methods on the two companies' ratio values. For each ratio discussed in this chapter, indicate which company will have the higher (and the lower) ratio value. Also, identify those ratios that are unaffected by the inventory valuation difference. Ignore the effects of income taxes, and assume inventory costs are increasing. Then, based on your analysis of the ratios, summarize your conclusions as to which company looks better overall.