15. H-Lo Sporting Goods and Fast Out Sports Outlet are identical in every respect except that Hi-Lo uses FIFO and Fast Out uses average cost. Assuming merchandise costs are steadily increasing, the current ratio and profit margin for Hi-Lo, compared to Fast Out would be: Current Ratio Profit Margin a. Higher Higher b. Lower Lower c. Lower Higher d. Higher Lower e. None of the above. 16. The purpose of recording depreciation is to: a. Provide funds for the replacement of the asset. b. Allocate the cost of the asset to the periods benefiting from its use. c. Approximate the market value of the asset. d. Reduce the asset to its estimated replacement cost. e. None of the above.