Wolf Company uses the LIFO method to account for inventory and Tiger Company uses the FIFO method.

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Wolf Company uses the LIFO method to account for inventory and Tiger Company uses the FIFO method. The two companies are exactly alike except for the difference in inventory cost flow assumptions. Costs of inventory items for both companies have been rising steadily in recent years, and each company has increased its inventory each year. Ignore tax effects.


Required:
Identify which company will report the higher amount for each of the following ratios.
1. Net profit margin ratio
2. Earnings per share ratio
3. Inventory turnover ratio
4. Current ratio
5. Debt-to-equity ratio

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Related Book For  answer-question

Financial Accounting

ISBN: 9781264229734

11th Edition

Authors: Robert Libby, Patricia Libby, Frank Hodge

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