Problem $8\mathrm{.}8$A $($Static$)$ FIFO versus LIFO Comparisons $($LO$8-1,$ LO$8-7)$

Walmart uses LIFO to account for its inventories. Recent financial statements were used to compile the following information $($dollar figures are in millions$)$:

Average inventory $($throughout the year$)$$ $44,692$Current assets $($at year$-$end$)90,067$Current liabilities $($at year$-$end$)92,645$Sales$559,111$Cost of goods sold$420,315$Gross profit$138,836$

Required:

Using the information provided, compute the following measures based upon the LIFO method:

a$-1.$ Compute the inventory turnover rate.

a$-2.$ Compute the current ratio.

a$-3.$ Compute the gross profit rate.

b$.$ Assuming cost of goods sold would be lower under FIFO, were replacement costs, on average, rising or falling?

c$.$ How would you expect these ratios to differ $($i$.$e$.,$ what direction$)$ had the company used FIFO instead of LIFO?