Based only on the information above, the most appropriate conclusion is that, over the period FY13 to FY1S, the company's: net profit margin and financial leverage have decreased. net profit margin and financial leverage have increased. net profit margin has increased but its financial leverage has decreased. net profit margin has decreased but its financial leverage has increased. International Accounting Standard does not permit which of the following cost flow assumptions (inventory valuation methods)? UFO. FIFO. Weighted average. Specific identification. Why is the method of valuing inventory important? Inventory valuation is based on the actual flow of goods. Inventories always account for more than 50% of total assets and therefore impact on a company's financial position. Companies desire to use the inventory valuation method that minimizes the expense. The inventory valuation method chosen determines the value of inventory and the cost of goods sold expense on the income statement, two items impact on the financial position of a company. Where can one most typically find the cost flow assumption used for inventory value specific company? In the Risk Management Association, Annual Statement Studies. In the statement of retained earnings. On the face of the balance sheet with the total current asset amount. In the notes to the financial statements. Compared to using the weighted average cost method to account for inventory, during a price are generally rising, the current ratio of a company using the FIFO method would ml lower. about the same, higher. dependent upon the interaction with accounts payable