In a period of rising prices, how would the following ratios be affected by the accounting decision
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In a period of rising prices, how would the following ratios be affected by the accounting decision to select LIFO, rather than FIFO, for inventory valuation?
• Gross margin
• Current ratio
• Asset turnover
• Debt-to-equity ratio
• Average tax rate AppenidxLO1
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Related Book For
Business Analysis And Valuation Using Financial Statements Text And Cases
ISBN: 9780324015652
2nd Edition
Authors: Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard, W.Gordon Filby
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