You are analyzing the financial statements of Able Ltd. and read in the notes to its financial statements that the company uses FIFO rather than an average cost formula when accounting for inventories. Inventory costs in the industry have been rising steadily for the past two years. You also learn that Able and the industry both use straight-line depreciation but Able estimates that its equipment has a useful life of 10 years compared with the industry average of eight years. Able's ratios would be very similar to the industry average if it were not for the differences mentioned above. What is the impact of Able's different accounting policies and estimates on its (a) inventory turnover,
(b) Asset turnover,
(c) Profit margin,
(d) Return on assets, and
(e) Return on common shareholders' equity compared with the industry average?