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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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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