Select all that apply Assuming purchase costs are declining, determine which statements below correctly describe what happens to cost of goods sold under FIFO, LIFO and weighted average cost flow methods. More than one answer may be correct. Multiple select question. Companies using FIFO will report the highest gross profit and net income. In a situation where prices are declining, companies using LIFO will report the smallest cost of goods sold. Weighted average cost of goods sold will be between FIFO and LIFO costs of goods sold. Companies using LIFO will report the highest ending inventory on their balance sheets (as compared to companies using FIFO or weighted average,) Companies using FIFO will report the smallest cost of goods sold (compared to companies using LIFO or weighted average.) Companies using LIFO will pay higher taxes than companies using FIFO, assuming all else being equal