6. In a period of rising inventory costs, which cost-flow assumption would produce the highest net income? Why? 7. Let's say that two companies, identical in every way except that one uses FIFO and one uses LIFO, went into a bank on the same day to get a loan in order to deal with the rising cost of acquiring inventory. Despite the fact that they both engaged in the same transactions at the same dollar values, one company reported higher net income and higher total assets on the financial statements. Which one was it? If the banker made the decision based on the company that would have higher cash flow associated with the inventory costing method choice, which company would have received the loan? 8. Describe some business and economic conditions that might make the lower-of- cost-or-market rule more likely to result in a write-down of inventory. 9. Under which of the inventory methods, periodic or perpetual, would a company be better equipped to detect inventory shrinkage? Why? 10. If a company is having a hard time selling its products, even at discounted prices, compared with last year, would this year's inventory turnover rate be higher or lower than last year's rate? What about the gross profit rate