Analyzing the Impact of Alternative Inventory Methods on Selected Ratios ( AP13-8) Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike except for the difference in inventory cost flow assumptions. Costs of inventory items for both companies have been rising steadily in recent years, and each company has increased its inventory each year. Ignore tax effects. Required: Identify which company will report the higher amount for each of the following ratios. 1. Net profit margin ratio 2. Earnings per share ratio 3. Inventory turnover ratio 4. Current ratio 5. Debt-to-equity ratio